Working gas in storage was 2,945 Bcf as of Friday, July 7, 2017, according to EIA estimates. This represents a net increase of 57 Bcf from the previous week. Stocks were 289 Bcf less than last year at this time and 172 Bcf above the five-year average of 2,773 Bcf. At 2,945 Bcf, total working gas is within the five-year historical range.
This moves us another 19 Bcf closer to the 5-year average. Average build for this week is 76 Bcf.
Over the last 17 weeks, the delta to the 5-year average natural gas storage level has declined by 247 Bcf.
There 18 weeks remaining before mid-November when the next winter heating season begins. If storage is below the 5-year average when the heating season begins, we should see the price of gas move over $4.00/Mcf.
Remember, that you heard it on my podcast months ago.
The real fun begins when we get to the last week of July. I now expect to see draws from storage in late July and early August. That will be a paradigm shift on Wall Street.
Natural gas storage report - July 13
Natural gas storage report - July 13
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group