Natural Gas Storage Report - Nov. 19

[dan_s]

Working gas in storage was 3,837 Bcf as of Friday, November 19, 2010, according to EIA estimates. This represents a net decline of 6 Bcf from the previous week. Stocks were 2 Bcf higher than last year at this time and 334 Bcf above the 5-year average of 3,503 Bcf.

Next week's storage report should show the first significant draw of the heating season. However, it is difficult for me to get bullish on natural gas. I would be hedging a lot of 2011 gas production at today's prices if I were running an E&P company.

I do believe the over-supply of gas will be worked down by this time next year.

We have several solid gassers on our Watch List.

For those wanting more gas in the portfolio, I suggest our upstream MLPs.

Dan