What does a cold start to April mean?

[dan_s]

Watch the daily update here: https://www.weatherbell.com/premium

If we see draws from natural gas storage in the first two weeks of April (even small draws), it should be bullish for natural gas and NGL prices. I say "should be" because this year has been anything but "normal" for gas prices. With natural gas storage ending the winter heating season 700+ Bcf below last year's ending storage, we should be seeing higher prices, but EIA keeps telling the market that we have a GLUT of natural gas supply. It sure isn't showing up in the weekly storage reports.

Draws going into April will shorten the refill season. If storage stays way below the 5-year average through June, it will put more pressure on utilities to go out and bid up the gas price to get more into storage before the next winter heating season begins.

On March 31, 2017 there was 2,051 Bcf in storage. On March 31, 2018 there will be AT LEAST 700 Bcf less gas in storage. See: http://www.americanoilman.com/

Regardless, Joe's forecast for April is extremely bullish for propane.