EIA - Natural Gas Storage Report - Dec 10

[dan_s]

Working gas in storage was 3,848 Bcf as of Friday, December 4, 2020, according to EIA estimates. This represents a net decrease of 91 Bcf from the previous week.
Stocks were 309 Bcf higher than last year at this time and 260 Bcf above the five-year average of 3,588 Bcf.
At 3,848 Bcf, total working gas is within the five-year historical range.

So, after last week's bearish storage report we get a draw from storage that is almost double the 5-year average (-50 Bcf) for the week.
Here is the rule: Making long-term forecasts based on one week or even one month of data in this industry (especially true for natural gas) is foolish. We aren't going to have history's warmest winter just because it was warm in November. Remember that we had the earliest draw from storage this year; a 36 Bcf draw in the week ending October 30. That draw sent ngas futures over $3.30.

Over the last 13 weeks (a much better gauge) the net builds in storage have been 182 Bcf below the 5-year average. The HUGE increase in exports of U.S. natural gas combined with even a mild winter is going to drain storage. LNG delivered prices are way up in Asia and going up in Europe. Plus, U.S. gas production is down year-over-year.

[dan_s]

The natural gas market has been growing at 3X the rate of growth in the global oil market. Here is just one example of why.

Wall Street Journal: Natural gas, propane are early winners in quest for clean ship fuels
Natural gas and propane are emerging as the leading choices for fuel sources to power vessels for shipping companies moving to slash carbon emissions in their operations. More than a quarter of the ships on order in terms of tonnage are slated to run on liquefied natural gas or liquefied petroleum gas, commonly known as propane, according to an industry trade group, a clear signal of how operators are planning to meet mandates to meet clean-air standards.