Natural Gas Storage Report - Feb. 11

[dan_s]

Working gas in storage was 2,268 Bcf as of Friday, February 6, 2015, according to EIA estimates. This represents a net decline of 160 Bcf from the previous week. Stocks were 542 Bcf higher than last year at this time and 11 Bcf below the 5-year average of 2,279 Bcf.

We need to see storage levels drop another 1,000 Bcf if we hope to see natural gas prices stay over $2.50/mcf this summer.

The next few weeks weather is very important.

[dan_s]

Pointing to continuing downward pressure on US natural gas prices, the Energy Information Administration on Tuesday reduced its Henry Hub spot price estimate for the first quarter of 2015 by 34 cents to $2.89/MMBtu. In its latest monthly Short-Term Energy Outlook, the agency made similar adjustments to its January estimates for the spot price in 2015, cutting its forecast 39 cents to $3.05/MMBtu, and in 2016, also down 39 cents to $3.47/MMBtu. EIA noted that the Henry Hub spot price for January averaged just $2.99/MMBtu, a decline of 49 cents from December "and the first monthly average price under $3/MMBtu since September 2012." The agency now expects monthly average spot prices to remain south of $3/MMBtu through the winter and below $4/MMBtu until the fourth quarter of 2016.