The analysts were looking for a build up in our natural gas storage supplies of 75-76 bcf in this morning’s report that came out at 9:30am.
We ended up with an 82 bcf build. That should lead to LOWER prices for two reasons –
1) the more gas in storage above what the experts project is bearish, and will generally drive gas and electricity prices downward;
2) as I mentioned in an earlier note this week, we have to see 20-35 bcf more than 5-year average each week to get our supply of natural gas back to the levels needed for another cold winter come November – today’s number was 24 bcf higher than the 5-year average and 41 bcf above the same week last year.
Hopefully we are now headed in the right direction for lower electricity prices short term. Natural gas was down 1.5 cents just before the report and was down 6.5 cents right after the report. Good news!