Natural Gas Storage Report - March 28.

[dan_s]

Working gas in storage was 1,781 Bcf as of Friday, March 22, 2013, according to EIA estimates. This represents a net decline of 95 Bcf from the previous week. Stocks were 642 Bcf less than last year at this time and 61 Bcf above the 5-year average of 1,720 Bcf.

> It is now certain that storage will dip below 1,700 bcf by March 31

> I am now expecting a decline of more than 100 bcf between March 22 and March 31.

> If next week's storage report from EIA shows a draw of 52 bcf or more, it will put the storage level BELOW the 5-year average. That will be extremely bullish for gas prices all year. It looks like NG storage levels will continue to move further below the 5-year average during April.

IMHO we will see gas trading over $5.00/mmbtu within the next twelve months and it could go a lot higher if we get a hot summer that increases demand from more gas fired power plants. Things are looking up for the gassers.