Natural Gas Storage Report - April 2

dan_s · Post by **dan_s** » Thu Apr 02, 2015 12:47 pm

Working gas in storage was 1,461 Bcf as of Friday, March 27, 2015, according to EIA estimates. This represents a net decline of 18 Bcf from the previous week. Stocks were 628 Bcf higher than last year at this time and 190 Bcf below the 5-year average of 1,651 Bcf.

We may see one more small draw from storage and then refill season will start.

We are below the 5-year average, but should have no trouble refilling storage before next winter begins. LNG exports by year-end, increasing industrial demand, increasing use of gas for power generation, and the big decline in onshore drilling should give some support for natural gas prices. However, I doubt we see gas over $3.00/mcf until the first cold wave hits in November. Outlook for 2016 should be a lot better for the "gassers".