Energy Prospectus

The EIA released its weekly Petroleum Status Report today, outlining how national oil and refined product stocks have changed in the last week.

Crude oil stocks increased by 6.8 MMBBL last week to 418.4 MMBBL, from 411.6 MMBBL. This is 15% below the 494.8 MMBBL that was in storage at this point last year, and is 4% above the five-year average. This week’s storage increase was significantly beyond expectations, as the average analyst prediction called for a draw of 0.3 MMBBL.

Actually crude inventories increased by 6.8 million.

And natgas is under $3 again, Gulfport making a new 52 week low (under $10). Ouf.

The Wall Street Gang will remain negative on the "gassers" until it isn't. All I can tell you is that the U.S. natural gas market is much tighter than it was last year. MUCH TIGHTER. Refilling storage before next winter arrives will eventually put upward pressure on gas prices.

Next week's gas storage report should be a slightly below average draw and then the next two will much larger.