Natural Gas Storage Report - October 9
Posted: Thu Oct 09, 2014 9:46 am
Working gas in storage was 3,205 Bcf as of Friday, October 3, 2014, according to EIA estimates. This represents a net increase of 105 Bcf from the previous week. Stocks were 359 Bcf less than last year at this time and 378 Bcf below the 5-year average of 3,583 Bcf.
It now appears ending storage level will be approximately 3,600 Bcf by Mid-November. That will be ~250 Bcf below the storage level when winter started last year. We will probably see one more week of +100 Bcf, then they will begin to drop as colder evening temps spread. I am expecting natural gas prices (the front month NYMEX contract) to move firmly over $4.00 after November 1. Where it goes from there is totally up to the Weatherman.
It now appears ending storage level will be approximately 3,600 Bcf by Mid-November. That will be ~250 Bcf below the storage level when winter started last year. We will probably see one more week of +100 Bcf, then they will begin to drop as colder evening temps spread. I am expecting natural gas prices (the front month NYMEX contract) to move firmly over $4.00 after November 1. Where it goes from there is totally up to the Weatherman.