The Energy Information Administration (EIA) reported a smaller-than-expected 171 Bcf withdrawal from natural gas storage inventories for the week ending Feb. 5.

EIA storage feb 5

Traders quickly erased the small price gains accumulated early Thursday, ahead of the weekly inventory report. The March Nymex gas contract was up 3.6 cents day/day at $2.947/MMBtu in the minutes leading to the EIA report, but quickly fell back to $2.910 as the print hit the screens. By 11 a.m. ET, March futures were trading at $2.897, off 1.4 cents from Wednesday’s close.

Market observers were quick to note that both the Pacific and South Central regions recorded smaller withdrawals than the market had been expecting. The EIA said the Pacific pulled only 4 Bcf from storage, while the South Central withdrew 55 Bcf....