Natural Gas Storage Report - Dec 17

[dan_s]

Working gas in storage was 3,368 Bcf as of Friday, December 17, 2010, according to EIA estimates. This represents a net decline of 184 Bcf from the previous week. Stocks were 56 Bcf less than last year at this time and 264 Bcf above the 5-year average of 3,104 Bcf.

This is mildly bullish for natural gas but the NG price still went down today. Cold in Europe and our Northeast is increasing the demand for heating oil.

There is so much shale gas out there that I cannot see NG getting back to $5/mcf no matter how cold it is this winter.

[dan_s]

It is very important to remember that oil trades on a global market but natural gas trades on regional markets. The price of natural gas is much higher in Europe (over $10/mcf today). This is why I remain quite bullish on FXEN.
Link below to Europe's natural gas price.
http://www.mongabay.com/images/commodit ... -ngeu.html