Natural Gas Storage Report - June 2

[dan_s]

Working gas in storage was 2,907 Bcf as of Friday, May 27, 2016, according to EIA estimates. This represents a net increase of 82 Bcf from the previous week. Stocks were 712 Bcf higher than last year at this time and 753 Bcf above the five-year average of 2,154 Bcf. At 2,907 Bcf, total working gas is above the five-year historical range.

This is why they call it the refill season. By mid-June we should see much smaller increases and may see a few draws in July & August.

[dan_s]

Gas prices are going higher because: Weather forecasts overnight continued to edge warmer and this helped start today’s rally. In the 6-10-day window, additional cooling demand potential was shown in the highly gas intensive state of Florida, and the 11- 15-day forecast showed added cooling demand potential in California and the interior Gulf Coast.

After the rain stops in Texas (expected by 6/6) it will get hot and very humid. Electrical demand will soar and so will natural gas demand as gas fired "peaking plants" all over Texas are brought on-line. I now think it is a lock that we see natural gas over $3.00 by Thanksgiving.

Also, a tropical storm is expected to develop next week west of Florida.

[dan_s]

With so much gas in storage, why are natural gas prices moving higher? Read article at the link below.

http://www.oilandgas360.com/natural-gas ... dium=email