Weekly Natural Gas EIA Storage Report for 25th February

By: Miguel A. Rodriguez

20:13, 25 February 2021

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Here are the latest details from the U.S. Energy Information Administration regarding natural gas inventories.

U.S. based freeze-offs contributed to the lower natural gas production & higher natural gas prices.

The dry natural gas production fell by 21.0 bcf/d, declining primarily because of flow blockages, with a large portion of the decrease in natural gas production stemming from the Texas freeze.

This week's significant price increases for many natural gas hubs resulted from a freezing winter season, and the heating and power demand for natural gas. It seems like these factors, combined with a sudden decrease in natural gas production due to the pandemic, pushed the prices towards all-time highs, as reported by the Waha Hub and Chicago Citygate.

These domino effects from the supply & demand imbalance also led to solid price pressures in some less affected markets by the recent cold weather.

 

Sources: eia.gov

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