Working gas in storage was 3,063 Bcf as of Friday, August 16, 2013, according to EIA estimates. This represents a net increase of 57 Bcf from the previous week. Stocks were 238 Bcf less than last year at this time and 44 Bcf above the 5-year average of 3,019 Bcf.
This is bullish for gas prices. A couple more reports in the mid-50s will really help heading into the fall. - Dan
Natural Gas Storage Report - August 22
Natural Gas Storage Report - August 22
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Natural Gas Storage Report - August 22
From CME Group:
By Dominick Chirichella - Thu 22 Aug 2013 11:10:12 CT
A smaller than expected inventory injection level sent the spot futures contract up to very near the upper range resistance area of $3.56/mmbtu. With a heat wave starting to evolve over major parts of the country the upcoming injection levels are likely to underperform for the next several weeks. Today's injection level was greater than last year but about equal to the so called normal five year average.
The latest NOAA six to ten day and eight to fourteen day forecasts are still projecting above normal temperatures over 80 percent of the US well into the first week of September. During this period the weekly inventory injections are likely to be below the five year average and even possibly less than last year's injection. The deficit may start to widen versus last year while the small surplus versus the five year average may begin to dissipate. The weather is the main driver for Nat Gas prices at the moment and will continue to be the main driver for the next several weeks at least.
The weather pattern could be setting up to delay the start of the low demand shoulder season much as the late winter extended into the early spring shoulder season which contributed to the large end of the heating season deficit in Nat Gas stocks this year. For the moment the Nat Gas market remains modestly bullish.
By Dominick Chirichella - Thu 22 Aug 2013 11:10:12 CT
A smaller than expected inventory injection level sent the spot futures contract up to very near the upper range resistance area of $3.56/mmbtu. With a heat wave starting to evolve over major parts of the country the upcoming injection levels are likely to underperform for the next several weeks. Today's injection level was greater than last year but about equal to the so called normal five year average.
The latest NOAA six to ten day and eight to fourteen day forecasts are still projecting above normal temperatures over 80 percent of the US well into the first week of September. During this period the weekly inventory injections are likely to be below the five year average and even possibly less than last year's injection. The deficit may start to widen versus last year while the small surplus versus the five year average may begin to dissipate. The weather is the main driver for Nat Gas prices at the moment and will continue to be the main driver for the next several weeks at least.
The weather pattern could be setting up to delay the start of the low demand shoulder season much as the late winter extended into the early spring shoulder season which contributed to the large end of the heating season deficit in Nat Gas stocks this year. For the moment the Nat Gas market remains modestly bullish.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group