Natural gas in storage is now at the lowest level for this date in eight years AND demand for natural gas is much higher than it was eight years ago. In the last eight years over 90% of new homes were built to heat with natural gas. My forecast is that storage at the end of November will be AT LEAST 400 Bcf below the 5-year average.
From John Kemp at Reuters: https://fingfx.thomsonreuters.com/gfx/c ... REPORT.pdf
After Labor Day this should become a Hot Topic.
U.S. Natural Gas Inventories
U.S. Natural Gas Inventories
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: U.S. Natural Gas Inventories
Keep in mind that the natural gas price you see in the daily headlines is the front month NYMEX futures contract for gas, which today is the September contract. We have plenty of gas to make it through September. Go to the link below and look at the January, February and March contracts. A cold December will send those contracts a lot higher.
See: https://www.cmegroup.com/trading/energy ... l-gas.html
Antero Resources (AR) already has all of their 2018 AND 2019 natural gas production hedged at $3.50/MMBtu. YES, 100% of their 2019 gas is hedged at that price.
See: https://www.cmegroup.com/trading/energy ... l-gas.html
Antero Resources (AR) already has all of their 2018 AND 2019 natural gas production hedged at $3.50/MMBtu. YES, 100% of their 2019 gas is hedged at that price.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group