KOLD - Natural Gas: Storage Level Outlook Remains Bullish (Despite The Weather)

• Currently, we expect the EIA to report a draw of 189 bcf this week (a final estimate will be released on Wednesday).
• Annual storage surplus is projected to shrink by 144 bcf by February 19.
• Our storage level outlook is still bullish vs. market expectations.
• If the latest weather forecast remains unchanged, total natural gas demand in the U.S. will edge down by 0.7 bcf/d y-o-y over the next two weeks.
• Fundamentally, the Feb. contract may drop below $2.560, but should probably stay above $2.510 per MMBtu.

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