The latest 6-10 and 8-14 day National Weather Service forecasts remain hot but not hot enough to sway trader focus away from storage which is rapidly filling up.
13 out of the past 15 EIA weekly storage reports have surpassed the 5-year average bringing the amount of gas in storage relative to the 5-year average to a 2.7% surplus versus the 10.5% deficit that existed the first week of April. Current gas in storage of 2,767 Bcf (billion cubic feet) is on track to reach a record high near 4,000 Bcf by the end of the year.
Production in the latest EIA report fell slightly by .3% to 72.3 Bcf per day which could mark be the beginning of a sustained fall as the rig count hovers near an all-time low of 218 rigs.
End user demand by the power generators continues to run 15-20% above last year. For the first time ever in 2015, power generator usage of natural has surpassed all other energy sources, a trend which is expected to continue.
Once summer cooling demand eases, a final price low for 2015 and possibly for many years to come is expected. Those needing to hedge longer term coverage for natural gas should get extremely aggressive if spot prices should trend back toward the lower-2.000 level later this summer.
No comments:
Post a Comment