Thursday, May 29, 2014

EIA Natural Gas Storage: 114 BCF Injection Overwhelms

Today's 114 BCF natural gas storage injection was more than expected and sent gas down 6 cents immediately.  It partially recovered but does indicate that production may be overwhelming the areas of demand growth.

The large injection reduced the storage deficit to last year and the 5 year average:

The largest storage shortfall continues to be in the Producing Region:

But within the Producing Region, Salt Dome Storage has recovered to within the historical range, and may be absorbing the oversupply due to its high injectability rates:

The West Consuming Region has also recovered the most among the three EIA regions: