Natural Gas Storage Report - August 30

[dan_s]

Working gas in storage was 3,374 Bcf as of Friday, August 24, 2012, according to EIA estimates. This represents a net increase of 66 Bcf from the previous week. Stocks were 429 Bcf higher than last year at this time and 361 Bcf above the 5-year average of 3,013 Bcf.

Thursday's storage report was slightly bearish but natural gas finished the week at $2.79/mmbtu.

Look for the next two week's reports to show some impact from hurricane Isaac.

I continue to believe that if NG in storage falls to within 200 bcf of the 5-year average, we will see Q1 prices over $4/mmbtu. Normal to cold December weather in the NE quarter of the U.S. is required for this to happen. Warm weather from Thanksgiving to year-end would be bad news for the gassers.