Natural Gas Storage Report - Dec 10

[dan_s]

Working gas in storage was 3,880 Bcf as of Friday, December 4, 2015, according to EIA estimates. This represents a net decline of 76 Bcf from the previous week. Stocks were 514 Bcf higher than last year at this time and 236 Bcf above the five-year average of 3,644 Bcf. At 3,880 Bcf, total working gas is above the five-year historical range.

The weather forecast for late December and the first quarter has turned BULLISH for natural gas prices.
Go to http://www.weatherbell.com/ and click on "Daily Update (12/10)" to see for yourself.

[bearcatbob]

Dan et al. The fact that there is a draw of that magnitude with the weather we are having in the upper mid west is amazing. The golf season continues - played twice this week. Next Tuesday and Wednesday also looks great. We have had a few dustings of snow - but nothing of any magnitude.

I am loving el Nino - but it is killing some of my shares. It will be interesting to see what the draws are if it ever gets cold here.

Bob

[dan_s]

As much as Obama wants it to happen, Mother Nature did not cancel winter. El Nino winters start mild, but then turn cold and wet.

Check out Bastardi's forecast and you will see a big change in the weather pattern coming before Christmas. Texas is now forecast to have a much colder than normal winter with a lot of snow. EVERYONE in Texas and the South in general heats their homes with natural gas. If Bastardi is right, we will see BIG DRAWS from storage in the first quarter.

Remember:
> LNG exports will ramp up in Q1
> U.S. natural gas production is now on decline. See: http://www.eia.gov/petroleum/drilling/#tabs-summary-2

[bearcatbob]

FWIW - let us evalutate Joe after the winter is over.

Once one gets into January the cold weather does not mean a damn if that is when it first starts. By then it is FAR TOO late to threaten storage. Storage defines price - this IMO this winter is sunk.


Bob

[dan_s]

To see how the weekly draws compare to draws over the last five years go here: http://www.americanoilman.com/

Click on "Gas Storage" in upper left hand corner.

[bearcatbob]

~$2 NG on Dec 10. That IMO tells the story for the winter of 2015/2016.

[setliff]

its not even winter, yet.