Natural Gas - Late winter storm should help

[dan_s]

NE is going to be blasted by a major winter storm over the next few days and another storm pattern is forming that could result in another significant snow storm by weekend 3/17 - 3/19.

It now looks like the storage report for the week ending 3/17 should be one of the largest draws from Ngas storage for the winter. As you can see below, the difference to the 5-year averages for the four weeks of March could be quite large and draw some attention.

5-Year Average draws from Ngas storage:
Week ending
3/10 = 60 Bcf
3/17 = 17 Bcf
3/24 = 32 Bcf
3/31 = 4 Bcf

I now think the next four storage reports for March will show a total draw of 300 Bcf, which would put ending storage below 2,000 Bcf. That is still relatively high, but way below last year's ending storage level of 2,480 Bcf.

The important thing for us is that refilling storage will now be a significant part of demand this summer when it was almost non-existent last summer.

Go here and click on Gas Storage in the upper right corner: http://www.americanoilman.com/