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 October ’15 delivery were relatively flat, albeit with some volatility, early Thursday morning ahead of the report at $2.70 per mmBtu.
The median estimate of industry analysts is for an injection of 62 Bcf. If actually reported, the injection would be 17 Bcf less than the 2014 reported injection (75 Bcf) and 4 Bcf more than the five-year average (58 Bcf).
NatGasInvestor estimates that the injection will total 62 Bcf. The current range of estimates from industry analysts is for an injection from 47 Bcf to 64 Bcf.
During the past week, natural gas bounced off major long-term support on the October ’15 contract at $2.64 per mmBtu. The hold of this support level is significant because it is the third time this support level has held since April 2015.
With eleven weeks left in the traditional injection season (April through October), bullish natural gas traders and investors are looking for strong beats of analysts’ estimates as shoulder season approaches. Shoulder season is the period between the peak of natural gas consumption due to power demand from summer heat and natural gas consumption from winter heating.
“I was very encouraged by the bounce off $2.64, especially in light of the broader market correction,” said Steve Kingston, a reporter for NatGasInvestor.com.
“As we approach the heart of shoulder season, I’ll be closing watching the development of the El Nino as well as any tropical activity before establishing a core position, either short or long, for Winter 2015/2016.”
To see the report at 10:30am EST, visit this link.
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