Natural Gas Storage Report - Jan 8

dan_s · Post by **dan_s** » Thu Jan 08, 2015 11:07 am

Working gas in storage was 3,089 Bcf as of Friday, January 2, 2015, according to EIA estimates. This represents a net decline of 131 Bcf from the previous week. Stocks were 250 Bcf higher than last year at this time and 67 Bcf below the 5-year average of 3,156 Bcf.

We need to see 1,000 Bcf taken from storage over the next four weeks. Next week should be the first of the Big Draws.

At the end of the heating season last year, storage dipped below 900 Bcf. The 5-year average for mid-April is 1,818 Bcf.

Refilling storage each summer is a big (and necessary) part of demand. If storage is over 1,500 Bcf at the end of this year's heating season, it will be very tough for natural gas prices to stay near $3.00/mmbtu this year. The weather is VERY IMPORTANT for the gas market.