Natural Gas Storage Report - Dec 21

[dan_s]

Working gas in storage was 3,444 Bcf as of Friday, December 15, 2017, according to EIA estimates. This represents a net decrease of 182 Bcf from the previous week.
Stocks were 183 Bcf less than last year at this time and 84 Bcf below the five-year average of 3,528 Bcf. At 3,444 Bcf, total working gas is within the five-year historical range.

This is obviously bullish, but traders are anticipating a bearish report next week since we have had mild weather for the week ending December 22nd.

Starting Christmas Eve the weather is expected to turn EXTREMELY BULLISH for natural gas consumption. Based on the national weather forecast, natural gas in storage should be declining 40+ BCF per day beginning December 24 and continuing for at least ten day. How long the much colder than normal weather lasts over the eastern U.S. will have a significant impact on natural gas prices in 2018. It now appears that for the two weeks ending January 5th over 500 BCF will be drawn from storage. That would push storage 300 BCF below the 5-year average.

Watch the weather update here: https://www.weatherbell.com/premium/