On Thursday, the EIA reported 172 BCF of gas withdrawn from storage in the week ending February 19th. Inventories currently stand at 1,853 BCF and are below year ago levels for the first time since Jan 2009. The surplus to the 5-year average is also diminishing, as inventories are currently only 13 Bcf above that level.
Despite the bullish inventory level, natural gas prices fell following the report. The prompt month (April ’10) contract ended the day 11 cents lower at $4.76/mmbtu. Prices are currently not reacting to fundamentals and are primarily weather driven. Mild conditions throughout much of the U.S. at the beginning of the week helped to pull prices lower.