Gas Storage Injection Misses Low, Prices Rally

Natural gas storage inventories increased 49 Bcf for the week ending August 9, according to the EIA’s weekly report. This is well below the market expectation, which was an injection of 61 Bcf. Working gas storage inventories now sit at 2.738 Tcf, which is 357 Bcf above inventories from the same time last year and 111 Bcf below the five-year average. At the time of writing, the September 2019 contract was trading at $2.262/MMBtu, roughly $0.119 higher than yesterday’s close and $0.134 higher than last week’s. The injection this week missed well below the market expectation. This bullish report sent prices up to ~$2.26 post report. Before the report, prices gained slightly on yesterday’s close, and were trading between $2.15 and $2.18. As prices rallied up to the highs for the morning, there was a slow down to the rally around $2.26. As we near the end of summer, the chances for a significant price rally are becoming limited. Extended heat will cause slight gains in prices, but any run will likely be limited. Another factor that could come into play is that we are entering peak hurricane season. Hurricanes and tropical storms have the potential to shut-in production, which… continue reading

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Source: CTRM Center

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