AGA Preview: U.S. Natural Gas Inventories Seen Down 75-100 bcf By Gloria Gonzalez, BridgeNews

New York--Dec. 5--The American Gas Association is expected to report that U.S. natural gas storage levels decreased by about 75 to 100 bcf, according to a BridgeNews survey of brokers and analysts. The AGA report will be released after 1400 ET Wednesday.

Last week, the American Gas Association reported U.S. gas storage at 2,502 bcf for the week ended Nov. 24, down 146 from the previous week, and down 499 from the same period of 1999.

Market sources expect Wednesday's report to feature a draw in the range of 75 to 100 bcf with a number in that range expected to be neutral for the market.

"I think the market will take any number okay this week because the focus is on the weather," said analyst Jim Ritterbusch of Ritterbusch Associates. "I think you'll have to see a number below 50 or above 100 to get anyone excited."

However, the market remains concerned about storage levels beyond this week with expectations for stronger withdrawals in the next few reports due to cold weather in the key consuming regions this week and forecasts for continued cool weather after the weekend.

AGA reported a 69-bcf withdrawal during the comparable period last year. The five-year average is a 51.6 bcf withdrawal.

The producing region's storage decreased 42 bcf to 622 bcf, or 65% of capacity last week, according to last week's AGA report. Producing storage levels are now 226 bcf below year-ago levels.

The eastern consuming region had a draw of 91 bcf to 1,552 bcf, or 85% of capacity. Eastern storage levels are now 162 bcf below year-ago levels.

The western consuming region storage levels decreased by 13 bcf to 328 bcf of gas, or 65% of capacity. Western region storage levels are now 111 bcf lower than a year ago.

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-- Martin Thompson (mthom1927@aol.com), December 05, 2000