Natural gas prices continue to see-saw back and forth rallying higher today following a slightly lower than expected EIA weekly storage injection.
Today's EIA storage report for week ended 09/04 came in at 68 Bcf, 7 Bcf lower than the average pre-report guesstimate. This number compares to a 90 Bcf injection last year and a 5-year average injection of 63 Bcf.
The market rallied back toward the upper end of the past 3-week trading range following release of the report with the October 15 contract topping out at a 2.735 daily high.
The market just can't seem to breakout of the current trading range.
Weather forecasts are providing support as are some of the recent weekly storage reports which have come in lower than expected. But storage injections which have surpassed the 5-year average 18 out of the past 22 weeks have kept prices under steady selling pressure on price rallies keeping the market in a sideways range.
Production ticked up the past week by .2% to 72.5 Bcf per day (dry-gas production) tying a high for the past 3 months. But overall production has been in an overall decline from the high set last December at 74.3 Bcf per day.
Not much else to comment on this market as news basically remains the same day in and day out.
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