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Natural Gas Storage Report - July 14
Posted: Thu Jul 14, 2016 1:08 pm
by dan_s
Natural Gas Roundup
July 14, 2016
NATURAL GAS INVENTORY (Week Ended 7/8/16)
Current: 3,243 Bcf
Actual Injection/(Withdrawal), per EIA: 64 Bcf < Compares to 5-yr average of 80 Bcf
Economist Average Estimate, per Bloomberg: 61 Bcf
Previous: 3,179 Bcf
Re: Natural Gas Storage Report - July 14
Posted: Fri Jul 15, 2016 11:59 am
by dan_s
When I add up the last ten weekly natural gas storage reports, the actual storage builds have been 618 Bcf compared to the 5-year average of 874 Bcf. A difference of 256 Bcf.
So, 256/70 days = 3.65 Bcf lower per day.
As I have posted here MANY TIMES, when the next winter heating season rolls around, the U.S. natural gas market will be 3 to 5 Bcf per day tighter than it was last year. That is a BIG DEAL and it will impact natural gas prices.
Late July and August is expected to be warmer than normal, which will increase demand from gas fired power plants.
Today, the January NYMEX contract for natural gas is trading at $3.35/mmbtu (see for yourself here:
http://www.cmegroup.com/trading/energy/ ... l-gas.html ) and I expect it to be over $3.50 by Thanksgiving. The January contract will be the "front month" in December.