Saturday, December 27, 2014

EIA: Gas in Storage -49 Bcf to 3.246 Tcf

The EIA reported this week that working gas in storage was down 49 Bcf to 3.246 Tcf.  The weekly withdrawal was only a quarter of last year's (-193 Bcf) and 64% below the five year average (-138 Bcf).  The market reacted strongly to these numbers, as the price of gas dropped precipitously during the week, with the Henry Hub spot price finishing at $2.74/MMBtu.

The current storage level is now 4.8% above last year (3.096 Tcf, a difference of 150 Bcf) and 4.9% below the five year average (3.415 Tcf, a difference of 169 Bcf).  Given another disappointing storage report like this one and the difference between the current and average will be wiped out, erasing a 60 percentage point difference from back in April.

No comments: