Thursday, September 3, 2009

Gas in Storage: Spread over 5 Year Average Decreasing Slightly

This week's gas storage number, as calculated by the Energy Information Administration, showed that gas in storage increased 65 Bcf to 3,323.  The 2% increase is a little below what is normal for this time of year.  Compared to last year and the five year average, this week's storage level is 17.3% and 17.8% greater, respectively.  This is a decrease from last week, when the differentials were 18.8% and 18.1%, respectively. 

I consider that relatively good news, but it's more in the sense of my ice cream is now melting slower than it was before.  Let's see how the market reacts.  (At this moment, the October gas futures price is down more than 7%, so I guess it's not reacting well.)

The East region saw a 3% injection, while the West and Producing regions saw 1% increases.  The chart below shows the current storage level (red line) compared to the five year range (shaded band).

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