Working gas in storage was 3,804 Bcf as of Friday, November 30, 2012, according to EIA estimates. This represents a net decline of 73 Bcf from the previous week. Stocks were 33 Bcf less than last year at this time and 168 Bcf above the 5-year average of 3,636 Bcf.
This a bullish report for natural gas but the market knows next week's storage report may be bearish since it was so warm across the country this week. Over the next few months weather will be the primary driver for natural gas prices. However, it is quite clear that natural gas demand for power generation and industrial uses (feedstock) is way up this year over 2011. That trend is likely to continue. Lots of manufacturing is coming back to the U.S. because of our low gas prices and abundant supply.
I just checked Weather Underground and it looks like it will be getting much colder over the Upper Midwest next week. This is the region of the country that burns the most natural gas for space heating. The five states that consume the most gas during the winter are Illinois, Michigan, Ohio, Wis, Minn. Number six is Texas.
Natural Gas Storage Report - December 6
Natural Gas Storage Report - December 6
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group