Friday, January 8, 2016

Watch the Line as End of Injection Season Trips up Storage

I know, I know, I told you I am not going to keep updating the site going forward, but I couldn't resist sharing the new year's working gas in storage chart.

Track the light blue line (2014) go through the year as the polar vortex creates a big deficit in the spring and summer.  That winter, prices spiked upwards but drifted back downwards during the year.  But as the year went along and the storage line eventually hits the gray bar signifying the end of the injection season in November, it hiccups and starts rising rapidly.  Then go back to the left side as the light blue line becomes the dark blue line (2015).  At this point, prices are dragging downward.  The dark line tracks the five year average line (gold) until it hits the gray bar in November again and then drifts upwards as the injection season goes long with the warm end of year weather.  Boom, we see the lowest gas prices in a couple of decades.  Shift back to the left and see the red line (2016) now floating way above all of the other lines.  Where it goes from here will be a major determinant of what happens to prices going forward.

That's a succinct explanation of what has been going on with storage and how it directly relates to the change in prices over the past couple of years.

1 comment:

Bobtail said...

Robert you do gas storage better than anyone else. I hate to see this end.