Working gas in storage was 3,789 Bcf as of Friday, November 15, 2013, according to EIA estimates. This represents a net decline of 45 Bcf from the previous week. Stocks were 89 Bcf less than last year at this time and 15 Bcf above the 5-year average of 3,774 Bcf.
Very bullish report. Next week should be a smaller draw, then we should see demand pick up big time as the first major blast of winter moves into NE quarter of U.S.
$4.00/mcf by year-end is now within reach.
Natural Gas Storage Report - Nov 21
Natural Gas Storage Report - Nov 21
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Natural Gas Storage Report - Nov 21
Nat Gas prices are picking up where they left off yesterday… higher. The spot Nymex Nat Gas contract has added another 1.75 percent or $0.068/mmbtu as of this writing. The market is continuing to digest the relatively bullish inventory report issued yesterday along with a bout of cold weather heading for a major portion of the US for the next several weeks.
The latest NOAA six to ten day and eight to fourteen day forecasts remain supportive for higher Nat Gas prices as heating related demand is likely to increase strongly over the next week or so. The six to ten day forecast is projecting very cold temperatures along the high population US east coast with the mid-west also expecting below normal temperatures through the end of the month. The eight to fourteen day forecast is projecting a bit of moderation in temperatures but the eastern two thirds of the country is still expecting below normal temperatures through the first week of December.
The market is clearly in a heating demand weather pattern and prices will be even more sensitive to the daily weather projections as the heart of the winter heating season slowly approaches. We may get one more injection into inventory next week after a week of mild temperatures this week over a major portion of the US. Beyond that the industry injection season will finally be over with net withdrawals quickly becoming the norm and slowly increasing in magnitude as winter weather sets in around the country.
The latest NOAA six to ten day and eight to fourteen day forecasts remain supportive for higher Nat Gas prices as heating related demand is likely to increase strongly over the next week or so. The six to ten day forecast is projecting very cold temperatures along the high population US east coast with the mid-west also expecting below normal temperatures through the end of the month. The eight to fourteen day forecast is projecting a bit of moderation in temperatures but the eastern two thirds of the country is still expecting below normal temperatures through the first week of December.
The market is clearly in a heating demand weather pattern and prices will be even more sensitive to the daily weather projections as the heart of the winter heating season slowly approaches. We may get one more injection into inventory next week after a week of mild temperatures this week over a major portion of the US. Beyond that the industry injection season will finally be over with net withdrawals quickly becoming the norm and slowly increasing in magnitude as winter weather sets in around the country.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group