Prices Rally on Bullish Storage Release

Natural gas storage inventories increased 55 Bcf for the week ending August 2, according to the EIA’s weekly report. This is below the market expectation, which was an injection of 61 Bcf. Working gas storage inventories now sit at 2.689 Tcf, which is 343 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 $2.133/MMBtu, roughly $0.050 higher than yesterday’s close and $0.069 lower than last week. A week after the explosion on TETCO, the line remains down, with very minimal gas flowing from the Berne compressor in Ohio south to the Kosciusko compressor in Mississippi. However, the impact of the line shutdown was the opposite of that expected. It was expected that prices would be pressured upward, as the ~1.7 Bcf/d of gas that was flowing south on the line was stopped. That did not happen; instead, prices trended downward from $2.20 to $2.12 from August 1 to August 2. A bullish event in the explosion was offset by the bearish LNG planned maintenance at Sabine Pass and drops in deliveries to Corpus Christi. In total, LNG deliveries dropped ~2.2 Bcf/d… continue reading

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Source: CTRM Center

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