Happy Storage Day
As expected, the EIA’s storage report came in as a massive withdrawal; the lower 48 states pulled -261 Bcf of gas out of storage for the week ending February 21, 2025. This was a very large withdrawal but not unexpected since last week was quite colder than normal.
The NYMEX April front month contract didn’t have a big reaction; it traded up and down around $4.00 US/mm before drifting down to settle at $3.94.
Temperatures are forecasted to be seasonally normal going into mid-March; the weekend will be below normal and next week will above normal. Note that “normal” temperatures are getting warmer as we slide out of winter.
Average daily production is still knocking on an all time high; February began with a record one day production of 106.7 Bcf before bitter cold Arctic cold caused freeze-offs to curtail output. But even with the freeze-offs, we still have an average output of 104.6 Bcf/day with ties the record output of December 2023. March could very well see that record broken. Regardless, we are looking forward to Spring and some warmer weather.