US natural gas futures fell more than 1.5% to around $2.82 per MMBtu, approaching their lowest level since September, after the Energy Information Administration reported a smaller-than-normal storage withdrawal. Utilities pulled 52 billion cubic feet (bcf) from storage last week, far below the 252 bcf draw in the same week a year earlier and the five-year average decline of 168 bcf. The latest withdrawal was also much smaller than recent weekly draws.
Total inventories slipped to 2.018 trillion cubic feet, leaving stockpiles 7.5% above year-ago levels and just 0.3% under the five-year average—a sharp reversal from mid-February, when storage stood about 6% below typical levels. Robust production continues to pressure prices, with Lower 48 output averaging 108.7 bcfd so far in February. In addition, warmer weather forecasts across much of the western US are further dampening heating demand. Even so, LNG exports remain strong at 18.7 bcfd and are on pace to set a new monthly record.
