Mild weather and increased production contribute to below-average withdrawal

  • U.S. natural gas storage expected to decrease by 66 billion cubic feet
  • Mild weather and increased production contribute to below-average withdrawal
  • Inventories currently 15.9% above five-year average
  • Natural gas prices rebounding after Chesapeake Energy announces production reduction

Last week, U.S. natural gas inventories saw a below-average withdrawal due to mild weather in the first half of February and increased production recovering from weather-related losses in January. Analysts predict a decrease of 66 billion cubic feet in underground storage for the week ended Feb. 16, bringing the total to 2,469 Bcf. This withdrawal is smaller than the five-year average for the same week, which is 168 Bcf. Inventories currently stand at 15.9% above the five-year average. Natural gas prices for March delivery have rebounded by 13% to $1.780 per million British thermal units after Chesapeake Energy announced plans to reduce production this year.

Factuality Level: 8
Factuality Justification: The article provides specific information about the expected withdrawal from U.S. natural gas inventories, including estimates from a Wall Street Journal survey and context about production and market conditions. The information is relevant, factual, and based on expert opinions, without any obvious bias or misleading information.
Noise Level: 3
Noise Justification: The article provides relevant information about the expected withdrawal from U.S. natural gas inventories, including estimates, market conditions, and upcoming reports. It stays on topic and supports its claims with data and examples. However, it lacks in-depth analysis, accountability, and actionable insights, which prevents it from receiving a higher rating.
Financial Relevance: Yes
Financial Markets Impacted: Natural gas markets
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article discusses the expected withdrawal from U.S. natural gas inventories, which has implications for natural gas markets. However, there is no mention of any extreme event or its impact.
Public Companies: Chesapeake Energy (CHK)
Key People: Anthony Harrup (Author)

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Reported publicly: www.marketwatch.com