The U.S. Energy Information Administration (EIA) is set to release its Weekly Gas Storage Report on Thursday at 10:30am EST. Natural gas prices for May ’15 delivery soared higher on Wednesday ahead of the report to settle at $2.61 or 8 cents higher.
With injection season in full swing, traders and investors are paying close attention to the build in storage. The EIA recently reported that it expects storage levels at the end of October, which is typically considered the end of injection season, to total 3,781 Bcf. The figure represents a level just 17 Bcf lower than the five year average.
In fact, the injections over the next several weeks are projected to be higher than both the five year averages as well as last year’s injection. For the current reporting week in 2014, the injection was 24 Bcf, and the five year average for the week is 27 Bcf.
The median estimate for this week’s injection is 56 Bcf, more than double last year’s injection as well as the five year average. The following are the full estimates of industry analysts:
“The pace of injections is key here,” said Steve Kingston, a reporter for NatGasInvestor.com. “The market has embraced that injection season is here and ready to ramp up, but if it accelerates too quickly, fear will overcome that end of injection season levels will be too high.”
Traders and investors may view the EIA’s Weekly Gas Storage Report upon its release at this link.
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