Thursday, November 17, 2016

Weekly Natural Gas Storage Injection of +30 BCF Sets Record of 4,047

The EIA announced a 30 BCF injection for the week ended Nov 11, which brought storage up to record levels at 4,047 BCF.  There were 7 more Gas-weighted heating degree days in the week vs 2015, and in general the offsets to power demand were greater this year, including increased hydro generation and nuclear output, so the gas supply fundamental picture is a bit tighter than the injection implies.  And heating degree days were well below normal in both 2015 and 2016, to the extent that we would likely have seen a storage withdrawal under normal weather conditions.  There should be about 17 more HDDs in next week's storage report.

The forecast continues to improve for the balance of the month, with just a couple more days of miserably low heating demand before we see an above normal cold forecast.