Thursday, October 22, 2009

Storage Injections Slow

This week's EIA natural gas in storage number increased 18 Bcf, or 0.5%, to 3.734 Tcf. The 18 Bcf injection is considerably lower than the injections for the past month, which have averaged in the mid-60's. This is not unexpected given the cooler weather across the nation and the fact that injections normally slow around this time of year, but it is good news in terms of stabilizing gas prices.

The divergence of gas in storage this year compared to recent history has narrowed again this week. Compared to the storage number this week last year, the percentage difference decreased to 11.9% from last week's figure of 13.8%. Compared to the five year average, the number decreased to 13.1% from last week's figure of 14.6%. The chart below shows this year's figure (red line) compared to the five year average (shaded band)

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