Natural Gas Storage Report
Posted: Thu May 17, 2012 2:17 pm
Working gas in storage was 2,667 Bcf as of Friday, May 11, 2012, according to EIA estimates. This represents a net increase of 61 Bcf from the previous week. Stocks were 774 Bcf higher than last year at this time and 773 Bcf above the 5-year average of 1,894 Bcf. [Two months ago gas in storage was ~950 bcf above the 5-year average.]
By no means is this a bullish report but at least it is not looking as bad for gas as it was 6-8 weeks ago, which explains the recent improvement in gas prices to around $2.60/mmbtu.
Several nukes were offline for maintenance, which created more demand for gas. Those nukes are coming back on-line for the summer peak demand for electricity. Very hot July/August would be bullish for gas.
I still see pressure on gas prices coming in September & October when gas storage fills early. Full Storage = ~4.2 TCF
A very cold December/January is our best chance to see gas move back toward $4/mmbtu.
By no means is this a bullish report but at least it is not looking as bad for gas as it was 6-8 weeks ago, which explains the recent improvement in gas prices to around $2.60/mmbtu.
Several nukes were offline for maintenance, which created more demand for gas. Those nukes are coming back on-line for the summer peak demand for electricity. Very hot July/August would be bullish for gas.
I still see pressure on gas prices coming in September & October when gas storage fills early. Full Storage = ~4.2 TCF
A very cold December/January is our best chance to see gas move back toward $4/mmbtu.