Mild temperatures and production recovery contribute to decrease

  • Withdrawals from U.S. natural-gas inventories expected to shrink by 77 billion cubic feet
  • Mild temperatures and limited demand contribute to decrease in storage
  • Production recovery also plays a role in the decrease
  • Expected withdrawal is smaller than the five-year average for the week
  • Natural gas prices reach lowest level in almost a year

Withdrawals from U.S. natural-gas inventories are expected to have shrunk substantially last week as mild temperatures for the season across much of the U.S. limited demand and production recovered. Natural gas in underground storage likely decreased by 77 billion cubic feet in the week ended Feb. 2 to 2,582 Bcf, according to the average estimate in a Wall Street Journal survey of 11 analysts, brokers and traders. That would be smaller than the five-year average withdrawal for the week of 194 Bcf. The expected withdrawal follows a 197-Bcf draw the previous week and a 326-Bcf drawdown the week before that. The Energy Information Administration said Tuesday it expects dry gas in storage to end the November-March winter heating season at 1,910 Bcf. Natural gas for March delivery was down 1.1% Wednesday at $1.987 per million British thermal units, reaching its lowest level for the front month in almost a year.

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Factuality Level: 8
Justification: The article provides specific information about the expected decrease in U.S. natural-gas inventories and the reasons behind it. It also includes data from a Wall Street Journal survey and mentions the upcoming release of the EIA’s weekly storage report. The article does not contain any obvious bias or misleading information.

Noise Level: 7
Justification: The article provides information on the expected decrease in U.S. natural-gas inventories due to mild temperatures and limited demand. It includes estimates from a Wall Street Journal survey and mentions the previous week’s drawdown. However, it lacks in-depth analysis, antifragility considerations, and accountability of powerful people. It also does not provide actionable insights or support its claims with evidence or data.

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
Justification: The article discusses the expected decrease in U.S. natural-gas inventories due to mild temperatures limiting demand and production recovery. This information is relevant to natural gas markets and may impact prices and companies involved in the natural gas industry.

Reported publicly: www.marketwatch.com