Natural Gas Storage Report - Feb 5

[dan_s]

Working gas in storage was 2,428 Bcf as of Friday, January 30, 2015, according to EIA estimates. This represents a net decline of 115 Bcf from the previous week. Stocks were 468 Bcf higher than last year at this time and 29 Bcf below the 5-year average of 2,457 Bcf.

What happens over the next six weeks will have a lot to do with where natural gas prices average for the year. My "HOPE" is that Joe Bastardi is right and February will be very cold for the eastern United States. He is off to a good start. See: http://www.wunderground.com/weather-for ... 90.1.99999

If storage levels decline by 1,000 BCF over the next six weeks, I think natural gas will average over $3.00 for the year. I now think ending storage will be within the 1,300 - 1,500 range.

The heating season ends mid-April. The average ending storage level is 1,650 BCF. Last year, storage dropped to 822 Bcf in mid-April, 2014, the lowest level seen in decades.

You can see weekly storage levels for the last five years at http://www.americanoilman.com/

PS: The states that burn the most gas for space heating during the winter are: Illinois, Michigan, Ohio, Wis, Mich and Texas. So: Keep an eye on Chicago's weather.