Natural Gas Storage Report - August 18

[dan_s]

Working gas in storage was 3,339 Bcf as of Friday, August 12, 2016, according to EIA estimates. This represents a net increase of 22 Bcf from the previous week. Stocks were 327 Bcf higher than last year at this time and 405 Bcf above the five-year average of 2,934 Bcf. At 3,339 Bcf, total working gas is above the five-year historical range.

Net increase of 22 Bcf compares to 5-yr average build for this week of 56 Bcf

This is the 15th week in row that the build has been SIGNIFICANTLY below the 5-yr average. Over the last 15 weeks the difference to the 5-year average narrowed by 432 Bcf.

There are 13 week left in the refill season before draws for space heating begin. If we stay on this path, storage will be very close to the 5-year average by mid-November.

Keep in mind that U.S. demand for natural gas is MUCH HIGHER than it was five years ago thanks to demand for power generation, industrial demand and increasing exports. Plus, Canada will have less gas to send us this winter.

Thanks to all of the rain, Texas and Louisiana have been much cooler this week. Next week's report may not be as bullish, but I still expect it to be below the 5-year average since heat in the major NE cities has remained above average.