Nat Gas Bullish Outlook

dan_s · Post by **dan_s** » Sat Dec 21, 2013 2:31 pm

Well known forecaster Joe Bastardi from Weatherbell forecasts a very cold January and February for the U.S. - to go with the cold December we have already seen. Watch short video at link below.

http://www.weatherbell.com/saturday-sum ... er-21-2013

We are now certain to see Ngas in U.S. storage to fall below 3,000 bcf by 12-31-2013 and there is a chance we see it below 2,900 bcf. That would be very bullish for gas price all by itself. Joe's forecast is now for VERY COLD weather in January that pushes way into the South.

If U.S. storage levels are below 2,200 bcf by January 31st we will see much higher prices (over $5.00/mcf) because there will be fear in some regions that storage levels could be insufficient to last through the winter.

NOTE: The storage "Base Load" is around 1,200 bcf, so we can't go much lower than that with out injecting air into storage locations, which gets very expensive and the storage operators do not want to do it.