Natural Gas Storage Report - Feb. 27
Posted: Thu Feb 27, 2014 9:45 pm
Working gas in storage was 1,348 Bcf as of Friday, February 21, 2014, according to EIA estimates. This represents a net decline of 95 Bcf from the previous week. Stocks were 905 Bcf less than last year at this time and 711 Bcf below the 5-year average of 2,059 Bcf.
Next week's report should show storage below 1,200 bcf heading into March. Last year, storage went down another 450 bcf in March, so there is now a darn good chance that ending storage is below 800 bcf. IMO that would be VERY BULLISH for gas prices this summer. It is difficult to see storage refilling prior to arrival of next winter. There is lots of gas supply coming to the market from the Marcellus and Eagle Ford but the dry gas play (Barnett, Fayetteville and Haynesville) are all decline.
Next week's report should show storage below 1,200 bcf heading into March. Last year, storage went down another 450 bcf in March, so there is now a darn good chance that ending storage is below 800 bcf. IMO that would be VERY BULLISH for gas prices this summer. It is difficult to see storage refilling prior to arrival of next winter. There is lots of gas supply coming to the market from the Marcellus and Eagle Ford but the dry gas play (Barnett, Fayetteville and Haynesville) are all decline.