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First Look - Natural gas reverses gains on warmer forecast

Oil makes small gains on global supply uncertainty
- The WTI March contract, expiring Thursday, added 0.4% to $72.53 a barrel
  - The more active April contract traded at $72.40
- OPEC+ continues to mull whether to delay productions increases once more
- Traders are also looking for more clarity on the severity of the Ukrainian drone strike on the CPC export pipeline into Russia
On Wednesday, the API reported crude stocks rose by 3.34 MMBbl last week (Reuters)
- Official oil inventory data from the EIA is due later Thursday
- Analysts have forecast that about 2.2 MMBbl of crude was added to U.S. stockpiles in the week ended on February 14
  - This would be the fourth straight build in a row since April 2024, if confirmed
Trump administration approves license for deepwater oil export terminal (EHN)
- The U.S. Department of Transportation’s Maritime Administration approved Sentinel Midstream’s application to build the Texas GulfLink terminal about 30 miles offshore
- The project plans to ship up to two million barrels of crude oil per day

Natural gas prices are lower by 12c, reversing some of yesterday’s gains
- March Henry Hub prices are trading lower following a warmer shift in weather forecasts, although prices are still above $4/MMbtu
  - The March contract has gained more than 50c this week
- Gas production was reduced again today due to freeze-offs in several regions, although Canadian imports have jumped to nearly 10 Bcf/d compared to an average of about 6.5 Bcf/d, bolstering supply
- The EIA will release its weekly natural gas inventory report today, with the median expectation of a -193 Bcf withdrawal, according to the Bloomberg survey
Comstock expands east Texas drilling activity (BBG)
- In the latest company earnings call, Comstock announced they had acquired the rights to drill on more than 500k acres and built 246 miles of pipelines in a rural area between Houston and Dallas
- The acreage is concentrated in Freestone and Leon counties
- In response to higher gas prices, the company said it will operate seven drilling rigs this year, compared to five last year