Natural Gas Storage Report - Jan 30

[dan_s]

Working gas in storage was 2,193 Bcf as of Friday, January 24, 2014, according to EIA estimates. This represents a net decline of 230 Bcf from the previous week. Stocks were 637 Bcf less than last year at this time and 437 Bcf below the 5-year average of 2,630 Bcf. In the East Region, stocks were 269 Bcf below the 5-year average following net withdrawals of 124 Bcf. Stocks in the Producing Region were 121 Bcf below the 5-year average of 924 Bcf after a net withdrawal of 84 Bcf. Stocks in the West Region were 47 Bcf below the 5-year average after a net drawdown of 22 Bcf. At 2,193 Bcf, total working gas is below the 5-year historical range.

This is very bullish. Storage level is now outside (below) the 5-year average. I have not seen this in over 10 years.

We've already had two record draws this winter and I think we will see a new record set next week. We may see the first 300 bcf draw EVER.

IMO natural gas will now stay over $4.50/mmbtu through April and maybe through June, depending on how long winter weather hangs around. The real story, which the market may be missing, is the big spike in NGL prices. Propane has tripled at Conway, Kansas. This is the Henry Hub for Propane. See: http://www.eia.gov/petroleum/heatingoilpropane/