Natural Gas Storage Report - Nov 8

dan_s · Post by **dan_s** » Thu Nov 08, 2012 7:31 pm

Working gas in storage was 3,929 Bcf as of Friday, November 2, 2012, according to EIA estimates. This represents a net increase of 21 Bcf from the previous week. Stocks were 109 Bcf higher than last year at this time and 244 Bcf above the 5-year average of 3,685 Bcf.

IMO this is bullish. It now looks like we will start the winter heating season with less than 4,000 bcf in storage. Last May there was concern that storage would be full (around 4,300 bcf) by September.

This is still a lot of gas to start the winter but if the last six weeks of the year are "normal winter" then we could see the storage level back within the 5-year average in January. If that happen, I believe NG prices will move firmly into the $4-$5 range. That would be very good news for a lot of our favorite E&P companies.