Natural Gas Storage Report - May 11
Posted: Thu May 11, 2017 12:21 pm
Working gas in storage was 2,301 Bcf as of Friday, May 5, 2017, according to EIA estimates. This represents a net increase of 45 Bcf from the previous week. Stocks were 372 Bcf less than last year at this time and 275 Bcf above the five-year average of 2,026 Bcf. At 2,301 Bcf, total working gas is within the five-year historical range.
34 Bcf knocked off the difference to the 5-year average storage level.
Mid-May to mid-June is the peak period for injections to storage ("Shoulder Season"). Weekly injections get up to 90-100 Bcf per week. As the summer heat moves into the eastern half of the U.S., demand for gas fired power generation increases and injections decline in late June. This year we will also get a spike in exports during the 3rd quarter. If it gets HOT this summer, we could see draws from storage in August.
I expect gas in storage to be at or below the 5-year average by the end of Q3. If so, we should see some good gas prices heading into the winter heating season. I DO NOT THINK NGAS WILL GO OVER $4.00, BUT FIRMLY ABOVE $3.50 IS MY SWAG.
Also, supply/demand for NGLs will get much tighter during Q3.
If you agree with me, then AR, GPOR and RRC are Screaming Buys at today's share prices.
34 Bcf knocked off the difference to the 5-year average storage level.
Mid-May to mid-June is the peak period for injections to storage ("Shoulder Season"). Weekly injections get up to 90-100 Bcf per week. As the summer heat moves into the eastern half of the U.S., demand for gas fired power generation increases and injections decline in late June. This year we will also get a spike in exports during the 3rd quarter. If it gets HOT this summer, we could see draws from storage in August.
I expect gas in storage to be at or below the 5-year average by the end of Q3. If so, we should see some good gas prices heading into the winter heating season. I DO NOT THINK NGAS WILL GO OVER $4.00, BUT FIRMLY ABOVE $3.50 IS MY SWAG.
Also, supply/demand for NGLs will get much tighter during Q3.
If you agree with me, then AR, GPOR and RRC are Screaming Buys at today's share prices.