Look Out New York

[dan_s]

A major Winter Storm is heading to NYC by Friday. Watch daily update here: https://www.weatherbell.com/premium/

The rotation of the storm will bring cold air and lots of snow to the Great Lakes Region next week.

Weather in March should push natural gas storage levels down to my prediction of 1,200 Bcf (from 1,760 Bcf of February 16). That means we will start the refill season with ~800 Bcf less gas in storage than we had a year ago. That is a big difference.

If winter weather hangs around well into April, shortening the refill season, then it could get quite interesting.

EIA keeps spreading the "gospel" that we have abundant natural gas production, but it is not showing up in the real data yet.

I expect the next two natural gas storage reports to show draws below the 5-year average (bearish), but the weather pattern now shows that the last four week's draw for March will be above the 5-year average (bullish). Even small draws in April are very bullish.

The 5-year average draws for the last six weeks of winter total 421 Bcf.