Natural Gas Storage Report - Jan 29
Posted: Thu Jan 29, 2015 10:54 am
Working gas in storage was 2,543 Bcf as of Friday, January 23, 2015, according to EIA estimates. This represents a net decline of 94 Bcf from the previous week. Stocks were 324 Bcf higher than last year at this time and 79 Bcf below the 5-year average of 2,622 Bcf.
Based on the weather we had this week, gas in storage should dip below 2,400 Bcf by January 31.
The forecast for early February (See Chicago Forecast at: http://www.wunderground.com/weather-for ... 90.1.99999) and Joe Bastardi's forecast that the next 45 days will be "the coldest winter weather seen in years for the eastern half of the U.S.", we could see the next seven weeks average over 200 Bcf draws per week from storage. If this comes to pass, that would put storage down to around 1,000 Bcf before the end of March. That would give support for gas prices. Draws from storage normally extend into Mid-April.
Refilling storage each summer is a big part of gas demand.
I remain bearish on natural gas prices until late 2015 when LNG exports start to ramp up.
Based on the weather we had this week, gas in storage should dip below 2,400 Bcf by January 31.
The forecast for early February (See Chicago Forecast at: http://www.wunderground.com/weather-for ... 90.1.99999) and Joe Bastardi's forecast that the next 45 days will be "the coldest winter weather seen in years for the eastern half of the U.S.", we could see the next seven weeks average over 200 Bcf draws per week from storage. If this comes to pass, that would put storage down to around 1,000 Bcf before the end of March. That would give support for gas prices. Draws from storage normally extend into Mid-April.
Refilling storage each summer is a big part of gas demand.
I remain bearish on natural gas prices until late 2015 when LNG exports start to ramp up.