Thursday, March 18, 2010

Storage Down Only 11 Bcf

The market isn't going to like this:  the weekly EIA natural gas in storage figure for last week showed only an 11 Bcf drop to 1.615 Tcf.  While still 2.4% better than last year's number, it has fallen to 4.7% behind the five year average. 

Withdrawals were small in the East and West Regions and there was actually a 14 Bcf injection in the Producing Region.

To get to the five year average withdrawal of 1.478 Tcf in two weeks, that means storage needs to drop 137 Bcf, or about 68 Bcf for each of the next two weeks.  That seems unlikely without a big Arctic blast.  It might be a long, hot summer for gas prices.

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