The EIA reported a net gas storage injection of 15 Bcf for the week ending November 3rd, right in line with the general consensus. The Nymex prompt month is trading relatively flat to the open at $3.27. Storage stands at 3,790 Bcf which is a 5.5% deficit to last year’s levels and 1.8% lower than the five year average.
We’ve seen both supply and demand increase week over week. Heating demand has increased by 9 Bcf per day and production has increased by .8 Bcf per day to a total of 74 Bcf. The February and March contracts are holding their own winter premium for now, but with added production coming on week by week, they may not be able to sustain their over $3 price tag.
