EIA - Natural Gas Storage Report - Dec 8
Posted: Thu Dec 08, 2022 10:48 am
Working gas in storage was 3,462 Bcf as of Friday, December 2, 2022, according to EIA estimates.
This represents a net decrease of 21 Bcf from the previous week.
Stocks were 51 Bcf less than last year at this time and 58 Bcf below the five-year average of 3,520 Bcf.
At 3,462 Bcf, total working gas is within the five-year historical range.
Bearish storage report but the JAN23 HH NYMEX futures contract is up this morning because of the colder shift in the weather forecast.
Trading Economics:
"US natural gas futures were trading near the $5.9/MMBtu mark, bouncing back from a five-month low of $5.3 hit on December 6, on forecasts of colder weather and higher heating demand over the next two weeks than previously expected. In the meantime, the latest EIA data showed that the working gas held in storage facilities in the US decreased by a smaller-than-expected 21 billion cubic feet last week. Still, prices remain unusually subdued for this year, with the US benchmark down more than 15% this month, as milder weather in most of October and November delayed the winter heating season while record levels of production added to the bearish sentiment. Output in the US Lower 48 states rose to a record 99.6 bcfd so far in December, up from 99.5 bcfd in November. At the same time, the Freeport LNG export plant in Texas, forced to go offline in June following a fire, expects to begin bringing operations back online only by year's end, in another delay due to pending regulatory approval."
For natural gas demand, the weather in Chicago and the other big cities around the Great Lakes is what you should be watching.
It sure will help if Freeport comes back online and January is colder than normal.
All five of our Sweet 16 gassers (AR, CRK, EQT, RRC, SBOW) are going to report very good Q4 results.
This represents a net decrease of 21 Bcf from the previous week.
Stocks were 51 Bcf less than last year at this time and 58 Bcf below the five-year average of 3,520 Bcf.
At 3,462 Bcf, total working gas is within the five-year historical range.
Bearish storage report but the JAN23 HH NYMEX futures contract is up this morning because of the colder shift in the weather forecast.
Trading Economics:
"US natural gas futures were trading near the $5.9/MMBtu mark, bouncing back from a five-month low of $5.3 hit on December 6, on forecasts of colder weather and higher heating demand over the next two weeks than previously expected. In the meantime, the latest EIA data showed that the working gas held in storage facilities in the US decreased by a smaller-than-expected 21 billion cubic feet last week. Still, prices remain unusually subdued for this year, with the US benchmark down more than 15% this month, as milder weather in most of October and November delayed the winter heating season while record levels of production added to the bearish sentiment. Output in the US Lower 48 states rose to a record 99.6 bcfd so far in December, up from 99.5 bcfd in November. At the same time, the Freeport LNG export plant in Texas, forced to go offline in June following a fire, expects to begin bringing operations back online only by year's end, in another delay due to pending regulatory approval."
For natural gas demand, the weather in Chicago and the other big cities around the Great Lakes is what you should be watching.
It sure will help if Freeport comes back online and January is colder than normal.
All five of our Sweet 16 gassers (AR, CRK, EQT, RRC, SBOW) are going to report very good Q4 results.