Natural Gas Storage Report - March 14

[dan_s]

Working gas in storage was 1,938 Bcf as of Friday, March 8, 2013, according to EIA estimates. This represents a net decline of 145 Bcf from the previous week. Stocks were 440 Bcf less than last year at this time and 198 Bcf above the 5-year average of 1,740 Bcf.

This is HUGE. The decline is way above analysts estimates. I was expecting a draw around 120 bcf.

This means we have a very good shot at seeing NG storage drop below 1,800 bcf before the end of March, when refill season begins. It also is a clear sign that supply/demand is much tighter out there than we think. I now think we will see the price of natural gas push over $4.00/mcf and it could happen soon. NG up big on NYMEX after the report.

[dan_s]

The next few inventory reports will likely see lower net withdrawals, lower than today's report as the winter heating season winds down. I would expect next week's report to show a net withdrawal in the 50 to 75 BCF range... above its comparable historical period but much lower than what this week's report will show. That said the latest NOAA short term forecasts are still projecting below normal temperatures for the next several weeks suggesting that the inventory withdrawal season could last past its normal historical ending time. This would be supportive for prices and could result in another push to the upside in futures prices before entering the lower demand shoulder season.

[wilmawatts]

Wow, 15th of March and 10 degrees in Minneapolis and 25 degrees in Chicago this morning with snow in Indianapolis. Detroit is 24 as well as Cleveland. Chilly

Looks like a few more weeks of draw to say the least. Has to be bullish to at least stabilize gas prices and gassers

[bearcatbob]

wilma, I am here in NE Ohio looking out at a snowy back yard on St. Patrick's day. Last year it was 70F and we were out golfing in shorts and tees.

Bob