Gas Storage Inventories Remain Below Historical Levels

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Natural gas storage inventories increased by 64 Bcf for the week ended Oct. 20, per EIA. The injection was in line with most market expectations of an injection in the mid 60s. The prompt month contract (Nov17) is trading down $0.03 to $2.886 per MMBtu, at time of writing.

Working gas storage inventories increased to 3.710 Tcf, level 189 Bcf below last year and also below the 5-year average by 46 Bcf.

The chart below continues to project end-of-injection season storage inventories as of Nov 1. Starting next week, the chart will project end-of-withdrawal season storage inventories. The traditional injection season runs April-October; however, storage injections will continue into November until heating demand is high enough to surpass natural gas production.

Gas Storage Inventories Remain Below Historical Levels

This Week In Fundamentals
The summary below is based on PointLogic’s flow data and DI analysis for the week ending 10/26.

• Supply: natural gas dry production gained this week, up 620 MMcf/d to 74.8 Bcf/d. The increases came from the Texas and Southeast regions as production fully recovers to pre-storm levels. Total production is back to levels seen during the week of Sept 22nd. Canadian imports are also up 280 MMcf/d.

• Demand: total demand is up 1.4 Bcf/d this week lead by higher residential and commercial demand. Cooler temperatures have started to bring heating demand up. Res/Com demand increased by 1.9 Bcf/d while power and exports were down week-on-week.

• Total supply is up 0.9 Bcf/d while total demand is up 1.4 Bcf/d. The market is shorter this week, therefore expect a smaller injection in the 50s Bcf in next week’s EIA release.

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