The analysts on average were looking for an additional 34 bcf of natural gas to be added to the gas in storage. The analyst I follow most closely was looking for an increase of 39 bcf. This would be the second week this year we would have had a build up in storage reserves, but still far below the 5-year average.
Today’s report came out a dismal build of only 24 bcf. Natural gas had traded as low as $4.484 so far this morning. It was down 2 cents just before the report came out this morning, but quickly jumped UP 12 cents with the report.
This does not bode well for short term electricity rates. Our storage supply of natural gas is now exactly HALF what it was a year ago, and 52% below our five-year average. Add to this the fact President Obama’s war on coal which runs many of our power plants, we may have a difficult time heating our homes this coming winter unless production and storage numbers for natural gas pick up soon.
Let’s hope next Thursday’s report is better.