Energy Prospectus

Working gas in storage was 2,907 Bcf as of Friday, May 27, 2016, according to EIA estimates. This represents a net increase of 82 Bcf from the previous week. Stocks were 712 Bcf higher than last year at this time and 753 Bcf above the five-year average of 2,154 Bcf. At 2,907 Bcf, total working gas is above the five-year historical range.

This is why they call it the refill season. By mid-June we should see much smaller increases and may see a few draws in July & August.

Gas prices are going higher because: Weather forecasts overnight continued to edge warmer and this helped start today’s rally. In the 6-10-day window, additional cooling demand potential was shown in the highly gas intensive state of Florida, and the 11- 15-day forecast showed added cooling demand potential in California and the interior Gulf Coast.

After the rain stops in Texas (expected by 6/6) it will get hot and very humid. Electrical demand will soar and so will natural gas demand as gas fired "peaking plants" all over Texas are brought on-line. I now think it is a lock that we see natural gas over $3.00 by Thanksgiving.

Also, a tropical storm is expected to develop next week west of Florida.

With so much gas in storage, why are natural gas prices moving higher? Read article at the link below.

http://www.oilandgas360.com/natural-gas ... dium=email