Types of underground natgas storage (click for larger version)
While the weather is, without a doubt, the biggest influence on the price of natural gas, there is another key influence that traders watch closely: storage numbers. Natural gas is stored mainly in large underground caverns during in the “summer” months (called “injection season,” April through October). Natgas is later withdrawn for use during the “winter” months (“heating” or “withdrawal” season, November through March). The U.S. Energy Information Administration (EIA) reports withdrawals for the week ending Feb. 12 were the twelfth largest on record since 2010, and the biggest one-week withdrawal in the past two years.
