Tuesday, November 9, 2010

EIA Reduces Projected NG Price Again

The soothsayers at the EIA released their monthly short-term energy outlook.  In it, the governmental agency lowered its estimate for the average natural gas price for 2011 to $4.31/MMBtu.  That's a decrease of 27 cents from last month's estimate.

In terms of gas in storage, EIA estimates that this November will see a net 3 Bcf decrease.  That implies there will be some more injections before the withdrawals start, not really a surprise.  EIA also estimates that storage levels in March 2011 at the end of the withdrawal season will be a patriotic 1.776 Tcf.  That's 114 Bcf higher than 2010's trough number.

This and $2.50 will get  you a short latte at Starbucks, but it's always interesting to watch the accuracy (or lack thereof) of projections.

No comments: