Natural Gas Storage Report - Dec. 28
Posted: Fri Dec 28, 2012 8:33 pm
Working gas in storage was 3,652 Bcf as of Friday, December 21, 2012, according to EIA estimates. This represents a net decline of 72 Bcf from the previous week. Stocks were 81 Bcf higher than last year at this time and 413 Bcf above the 5-year average of 3,239 Bcf.
Starting next week we should see triple digit draws from storage. The storage reports should be very bullish compared to the start of winter last year and we should see the surplus to the 5-year average begin to shrink.
We need gas in storage to get down below 1,800 bcf by April. If so, we could see NG over $5/mmbtu in 2013. Getting the storage level down to 3,000 bcf by the end of January is step one.
It is all about the weather now. The 7-day forecast looks like a normal start to the winter, which is bullish compared to last winters very warm start.
Starting next week we should see triple digit draws from storage. The storage reports should be very bullish compared to the start of winter last year and we should see the surplus to the 5-year average begin to shrink.
We need gas in storage to get down below 1,800 bcf by April. If so, we could see NG over $5/mmbtu in 2013. Getting the storage level down to 3,000 bcf by the end of January is step one.
It is all about the weather now. The 7-day forecast looks like a normal start to the winter, which is bullish compared to last winters very warm start.