Natural Gas Storage Report - Sept 29

[dan_s]

The 5-year average increase in storage for this week is 97 Bcf.

Working gas in storage was 3,600 Bcf as of Friday, September 23, 2016, according to EIA estimates. This represents a net increase of 49 Bcf from the previous week. Stocks were 90 Bcf higher than last year at this time and 220 Bcf above the five-year average of 3,380 Bcf. At 3,600 Bcf, total working gas is above the five-year historical range.

This report is very bullish. The increase in storage was ~50% of the 5-year average. We've now had 21 weeks in a row where the builds in storage have been significantly below the 5-year average. During the last 21 weeks, the difference to the 5-year average has dropped by 618 Bcf (4.2 Bcf per day).

By the end of October gas in storage s/b below where it was last year. By the end of November, storage will be at or below the 5-year average AND demand for natural gas is ~8 Bcf per day higher than it was 5 years ago.

I will comment more on this situation at our luncheon tomorrow at The Hess Club. PLEASE register if you plan to attend.