By Anthony Harrup
Last week likely saw a below-average withdrawal from U.S. natural gas inventories as a mild first half of February limited heating demand and production recovered from January’s weather-driven losses.
Natural gas in underground storage is expected to have decreased by 66 billion cubic feet in the week ended Feb. 16, to 2,469 Bcf, according to the average estimate in a Wall Street Journal survey of 10 analysts, brokers and traders. That would be smaller than the five-year average withdrawal for the week of 168 Bcf.
Estimates in the survey range from a draw of 10 Bcf to one of 88 Bcf.
The expected withdrawal follows a surprisingly small 49-Bcf draw the previous week, which left inventories 15.9% above the five-year average for the time of year.
Natural gas for March delivery was gaining 13% Wednesday, to $1.780 per million British thermal units, rebounding from a three-and-a-half year low after Chesapeake Energy said it expects to reduce production this year, citing current market conditions.
The U.S. Energy Information Administration is due to release its weekly storage report Thursday at 10:30 a.m. EST.
Write to Anthony Harrup at anthony.harrup@wsj.com
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