Thursday, November 4, 2010

EIA: Storage +67 Bcf to 3.821 Tcf

Yikes!  The EIA reported that the current working gas in storage levels increased 67 Bcf to 3.821 Tcf.  The  current storage level is now even higher than last year's record level!  The weekly injection was 2.3 times greater than last year's (+29 Bcf) and 2.6 times greater than the five year average.  The current storage levels are now 1.0% greater than last year and 10.2% higher than the five year average.

Given the late run in storage buildup and the projected mild winter, it is going to be hard to bleed down storage levels to a decent starting point at the beginning of next spring's new injection period. I guess the good news is that the current low price of gas will help lead to some temporary fuel switching from coal at many utilities, which will push at least a little more demand.

Warm temperatures across the Midwest and eastern portion of the U.S. certainly explain why the red line in the chart above busted through the blue line (last year's record storage level).  U.S. temperatures were 5.4 degrees warmer than average last week.

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