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To View the Most Recent Natural Gas in storage report please click here.
11/23/2005
The weekly underground natural gas storage numbers were released today. The overall number was 8 billion cubic feet smaller than the number last week despite the warmer than average weather in the continental US.
Total gas storage now stands at 3,274 billion cubic feet, just short of the 32 billion cubic feet of last year's record high and 6.3% above the five-year average.
The drawdown in the inventories did not lead to a rally, however; and the December Natural Gas contract only settled 6 cents higher.
The Natural Gas inventories are highly unlikely to come in higher next week. The seasonality of natural gas consumption is obvious and we might be set for the seasonal drawdown of reserves.
One question that still bugs me: is the price of natural gas reflecting the fundamentals? One way to check this, would be to observe how the storage numbers respond to colder weather. This would give us more information about the real supply and demand. All we need now is some colder weather...
This is not a trade recommendation and no one should treat it as such. |
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