After tomorrow’s EIA report, we look ahead to just two more expected withdrawals from storage before gas begins getting injected back into storage for next winter. In our Morning Update we outlined our recent storage expectations, with an extra week of withdrawals likely this year because of strong early April cold.
Clearly, natural gas prices were not too excited about the expected withdrawal to be reported tomorrow, with prices trading in a tight range and the May contract settling slightly lower (though its settle was still a hair above the April expiry yesterday).
The entire strip only saw mild losses on the day.
Tomorrow’s EIA print comes for week where GWDDs ticked down lower.
It also is forecast to be decently larger than the 5-year average, further exacerbating the current storage deficit.
Already we have data from Dominion Transmission that withdrawals last week were far smaller than the week prior, with the resulting draw from the East region easily smaller week-over-week.