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 higher early Thursday morning at $2.691 per mmBtu, over a four cent increase from the previous day’s close.
The median estimate of industry analysts is for an injection of 76 Bcf. If actually reported, the injection would be 16 Bcf less than the 2014 reported injection (92 Bcf) and 16 Bcf more than the five-year average (60 Bcf).
NatGasInvestor estimates that the injection will total 79 Bcf. The current range of estimates from industry analysts is for an injection from 69 Bcf to 82 Bcf.
Natural gas has continued to hold major long-term support on the October ’15 contract at $2.64 per mmBtu. This multiple testing of major support is increasingly bullish for the commodity from a technical trading standpoint. However, as the heart of shoulder season approaches, the commodity will require support from weather, tropical activity, or another fundamental to avoid a final sell-off prior to the winter withdrawal season.
“For the bulls, $2.64 has been your best friend. The support there has been incredible, and I thought for sure we would have broken below this level and out of the channel by now,” said Steve Kingston, a reporter for NatGasInvestor.com.
“With each retest, the $2.64 level only becomes stronger. Look for a nice bounce higher on any weather, tropical activity, or other event outside the normal scope of shoulder season.”
To see the report at 10:30am EST, visit this link.
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