The huge storage build and very low weather demand likely means that it is going to be hard to avoid containment issues over the next few weeks
our interest is in the front month October's, currently 2.013 after trading down to 1.926 (someone got liquidated hard and dry)Natural gas futures are trading mixed on Friday after plunging the previous session after the government reported a huge storage build. The news raised concerns over a potentially bearish imbalance while escalating worries about looming storage surpluses as the summer cooling season comes to an end.
At 10:17 GMT, December natural gas is trading $3.095, down $0.002 or -0.06%.
This week’s bearish price action suggests the recent rally was overly speculated and not supported by the current supply/demand situation. Brimming storage levels in September are more indicative of lower prices, something the markets haven’t reflected all month until this week.
U.S. Energy Information Administration Weekly Storage ReportThe U.S. Energy Information Administration reported Thursday that domestic supplies of natural gas rose by 89 billion cubic feet for the week-ended September 11. That was larger than the increase of 77 billion cubic feet forecast by analysts polled by S&P Global Platts.
Total stocks now stand at 3.614 trillion cubic feet, up 535 billion cubic feet from a year ago, and 421 billion cubic feet above the five-year average, the government said.
Last week, the EIA reported an injection of 70 Bcf for the week ending September 4. This week’s build kept domestic storage on pace to approach 4.0 Bcf by the end of October, the EIA said. At that level, containment risks could shake up the markets.
Ahead of the report, a Bloomberg survey found estimates ranging from 68 Bcf to 81 Bcf, with a median of 78 Bcf, while a Reuters poll found a low estimate of 68 Bcf and a high of 85 Bcf with a median of 80 Bcf. Energy Aspects projected a 90 Bcf build for the week. NGI’s model predicted an 84 Bcf injection for the week-ending September 11....
....MUCH MORE
Recently:
EIA Natural Gas Weekly Update
....Climateer here: Although our internal models caught the uptick in LNG deliveries to export terminals we completely missed the falloff in demand in the power burn and I'm not exactly sure how such a costly error occurred.
EIA Natural Gas Storage Report: Possibly Our Worst Call Ever
According to Natural Gas Intelligence (NGI), analysts are expecting a plump storage build....
Plump. How about morbidly obese?
