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 September ’15 delivery were down almost three cents early Thursday morning ahead of the report at $2.905 per mmBtu.
The median estimate of industry analysts is for an injection of 56 Bcf. If actually reported, the injection would be 22 Bcf less than the 2014 reported injection (78 Bcf) and 4 Bcf more than the five-year average (52 Bcf).
NatGasInvestor estimates that the injection will total 54 Bcf. The current range of estimates from industry analysts is for an injection from 38 Bcf to 60 Bcf, although the 38 Bcf injection estimate is likely an outlier.
Last week, the EIA reported an injection of only 32 Bcf, crushing the median estimate of analysts (42 Bcf) by 10 Bcf. Many analysts attributed their poor estimates to the record-breaking power demand due to Texas heat. Likewise, some analysts have warned that another surprise could be in store for this week’s report as a few days during the reporting week saw similar heat in Texas and thus widespread power demand.
“I’m concerned that any significant beat of estimates may have been priced in yesterday,” said Steve Kingston, a reporter for NatGasInvestor.com.
“We saw a significant rally to a critical resistance level at $2.92. In order to see $3.00, a sub-50 injection and a bullish 12z GFS model would likely get us there.”
To see the report at 10:30am EST, visit this link.
To contact the reporter for this story, please email firstname.lastname@example.org.