The U.S. Energy Information Administration (EIA) is set to release its Weekly Gas Storage Report on Friday morning. Natural gas prices for December ’15 delivery were up almost four cents early Friday morning at $2.297 per mmBtu.
The median estimate of industry analysts is for an injection of 49 Bcf. If actually reported, the injection would be 9 Bcf more than the 2014 reported injection (40 Bcf) and 19 Bcf more than the five-year average (30 Bcf).
NatGasInvestor.com estimates that the injection will total 45 Bcf. The current range of estimates from industry analysts is for an injection from 41 Bcf to 78 Bcf.
PointLogic Energy, a top-ranked analyst according to NatGasInvestor’s Analyst Accuracy Rankings, estimates that the injection will total 49 Bcf. Citi Futures, the lowest ranked analyst, estimates that the injection will total 78 Bcf.
Natural gas prices were up Thursday morning primarily from a bullish GFS 06z run, which showed 281.5 gas-weighted demand days as well as a likely bounce from hitting a small support level in Thursday’s action.
“The gas-weighted demand days are finally starting to increase,” said Steve Kingston, a reporter for NatGasInvestor.com. “Caution is still the approach here, but the stage is being set for when some real demand appears in the models and starts to reflect in withdrawal reports, which are finally coming either next report or definitely the week after.”
“Even if a cold spell is only temporary, look out. This spring is wound tight. But I’m still very cautious about the month of December being warm, and therefore, short-term trading opportunities are what I’m looking for.”
Natural gas storage levels currently sit at 3,929 Bcf, which ties the record for natural gas storage levels set in 2012. Today’s injection will break the storage level record, but with a potential withdrawal or injection next week, it is unlikely that levels will surpass the dreaded 4 Tcf mark predicted by many analysts in April this year.
“2015 has been tough for natural gas and commodities in general. Some call natural gas the widow-maker. I’m on my third wife,” said Kingston.
To see the report at 10:30am EST, visit this link.
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