Natural Gas Storage Report - Feb 2

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dan_s
Posts: 37277
Joined: Fri Apr 23, 2010 8:22 am

Natural Gas Storage Report - Feb 2

Post by dan_s »

Working gas in storage was 2,711 Bcf as of Friday, January 27, 2017, according to EIA estimates. This represents a net decrease of 87 Bcf from the previous week. Stocks were 266 Bcf less than last year at this time and 59 Bcf above the five-year average of 2,652 Bcf. At 2,711 Bcf, total working gas is within the five-year historical range.

About what was expected. It was rather warm last week.
Dan Steffens
Energy Prospectus Group
dan_s
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Joined: Fri Apr 23, 2010 8:22 am

Re: Natural Gas Storage Report - Feb 2

Post by dan_s »

Raymond James Natural Gas Industry Update

J. Marshall Adkins

Summary

Winter trend continues with 4th consecutive, tighter (weather adj.) withdrawal. This week's withdrawal of 87 Bcf was largely in-line with the consensus estimate of an 85 Bcf withdrawal and higher than our estimate of a 77 Bcf withdrawal. This implies that the market was 3.4 Bcf/d tighter than last year on a weather-adjusted basis and we have averaged 2.7 Bcf/d tighter than last year over the past four weeks. As it stands, the storage deficit of 288 Bcf decreased by 65 to a deficit of 223 Bcf and gas-in-storage now totals 2,711 Bcf.

Fundamentally speaking, 2017 should prove to be a positive year for natural gas prices as demand is likely to be pushed by exports of gas to Mexico and a continued ramp up of LNG exports, while supply should see some effects of lower imports from Canada. When it comes to weather, which is always a black box beyond the upcoming 1-2 weeks, we have seen milder than normal weather materialize for the past few weeks, and it is uncertain whether this will normalize as winter continues.
Dan Steffens
Energy Prospectus Group
bigtex
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Re: Natural Gas Storage Report - Feb 2

Post by bigtex »

which still leaves my poor GPOR in the cellar
k1f
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Joined: Tue May 04, 2010 9:47 am

Re: Natural Gas Storage Report - Feb 2

Post by k1f »

<<which still leaves my poor GPOR in the cellar>> Me too. And options dead as well, w/ gas futures scraping noses on $3 again. Bob has nailed the strange weather problem. And these hombres <<http://marketrealist.com/2017/02/us-nat ... month-low/>> suggest that the market has priced in expectations; collateral gas from oil-drilling has complicated the rig count; and $$ has diverted to the giddy DJIA btw spikes of nervous pessimism that's kept gold aloft.
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