Thursday, January 28, 2010

Storage Levels Down 86 Bcf but Fall Behind Historical Levels

The weekly EIA natural gas in storage report showed a decrease of 86 Bcf to 2.521 Tcf.  The 86 Bcf withdrawal was well below last year's withdrawal for this week of 184 Bcf and the five year average of 179 Bcf.  As a result, current storage levels are 5% higher than last year and 3.6% higher than the five year average. 

While the weather is cold throughout the Midwest this week, it is expected to be seasonal for the following weeks.  This should put downward pressure on gas prices and reinvigorate the conversation about natural gas oversupply.  Oh, joy!

The temperature maps for last week show that warm weather dominated, leading to the lower than normal withdrawal.

No comments: