EIA Natural Gas Storage Report – August 25, 2017 – Market Review

EIA Natural Gas Storage Report – August 25, 2017 – Market Review

The EIA reported a net gas storage injection of 30 Bcf this morning for the week ending August 25th. This was right in line with the markets expectation which was between 27-38 Bcf, with a consensus of 30 Bcf. The Nymex prompt month is trading down $.01 at $2.93/MMBtu. The 30 Bcf build was less than last year’s 46 Bcf for the same week and significantly less than the 67 Bcf for the five-year average. The 12-month strip is currently trading at $3.00/MMBtu. Natural gas inventories are now at 3.155 Tcf, compared to last year’s 3.394 Tcf, and the five-year average of 3.147 Tcf.

• Short term temperature factors still leaning bearish with cool weather expected across most of the midwest for the next two weeks.
• Hurricane Harvey’s impact on curtailments have been overshadowed by the cooling effects from the storm
• Going into winter with an average storage supply appears ample to meet normal winter requirements, a colder than normal winter would force a strain on the situation that could keep winter Nymex contracts over the $3.50 level.

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