[topher]

Last week numbers were revised down.

Natural Gas prices are sitting at $6.10+, which is considerably higher than the $4 price it had been.

That means that Natural Gas is about 50% or more higher right now.

[topher]

The report states that the amount is now about 1 trillion cubic feet less than last year (a very significant amount).

We start the season with about 3.8 trillion cubic feet, so getting close to 1.2 trillion cubic feet left in storage while we still have about 4 weeks of winter is not very good.

However, as temperatures do get warmer, natural gas is pumped into storage.

The question now is how soon that will happen, and if there will be much Natural Gas left before the cold weather is over...

[Okieshooter]

Actually the natural gas price has been in the low 3’s until very recently, so the price could be double of what it was if the cold snaps continue much longer. It looks like storage could reach lower levels than it has in many years. As I recall it was price das high as $11 in 2007.

[Attention Surplus Disorder]

My belief (and my more than modest-sized bet) is that NG will fall significantly towards the spring. Painful in the interim, yes.

[SharpRightTurn]

We’re not far off from the “shoulder months” when there is decreased natural gas usage and net injections increase dramatically.

Since gas prices hit the cellar a few years back because of the surplus glut, most drilling has been for oil or liquids rich gas, as gas prices were so low that a company couldn’t recoup its costs for gas drilling. However, with the volume of gas that can be produced from a horizontal well a lot of gas can be brought onto the market (and into storage) these days.