The EIA’s Weekly Natural Gas Storage Report showed the largest inventory draw since the EIA started tracking the data in 1994. However, the withdrawal was slightly underwhelming, as analysts anticipated an even larger natural gas storage draw down resulting from increased heating needs during the recent extreme cold that blanketed much of the country. As such, prompt-month natural gas futures prices decreased slightly when the data was released this morning.

Inventories fell 287 Bcf in the week ended January 10, but analysts anticipated storage volumes would decrease by more than 300 Bcf.

“Obviously the market was expecting a large draw,” said David Bouckhout, senior commodity strategist at Toronto-Dominion Bank in Calgary. “It’s hard to classify a new weekly record draw as a bearish number, however, compared with expectations, a 287-draw was under expectations and is therefore weighing on prices.” – As reported by Bloomberg News