By Anthony Harrup
Natural-gas inventories likely fell last week by less than average for the season as mild temperatures for much of December limited demand for heating.
Withdrawals from underground natural gas storage are seen at 78 billion cubic feet for the week ended Dec. 22, according to the average estimate in a Wall Street Journal survey of 10 analysts, brokers and traders. That would bring storage down to 3,499 Bcf from 3,577 Bcf a week before.
Estimates in the survey range from a draw of 72 Bcf to one of 82 Bcf.
The U.S. Energy Information Administration is due to release its weekly natural gas storage report Thursday at 10:30 a.m. EST.
Unseasonably mild weather through December has led to a series of smaller-than-average withdrawals at the start of the high-demand winter period, putting downward pressure on natural gas prices.
Natural gas futures picked up in the past week, however, as colder January weather approaches with prospects of bigger draws on stocks. The January contract, which expires Wednesday, was recently up 4.2% at $2.657 per million British thermal units. Gas for February delivery was up 2.7% at $2.485/mmBtu.
Write to Anthony Harrup at [email protected]
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