Most of the wrap comments will be incorporated into the Monday post along with the coming week's earnings table and "The Week that Was" summary but we thought we'd throw out yesterday's storage graphs and brief comments as we love it when a plan (in this case, the flatter slope of the injection line) really comes together as expected (self back pat right there but hey, its Saturday, and the sideways trade in the group is in progress, the leveraged gassy plays are working, the sun is shining (and its hot!), etc). Enjoy the weekend.
We are now 470 Bcf above the 5 year average, down from 927 Bcf over it at the end of March
This wasn't a record low storage number for this week in history, that goes to 2006 with -7 (we had some Gulf related outages around that time) but it was far and away the second lowest number for this week in history.
We are now 211 Bcf below the 2009 level (down from 249 Bcf in the prior report). 2009 represents the upper band of the historical range for storage.
Cumulative gas injections for 2012 are running 3.3 Bcfgpd behind the five year average. Meaning that on average we have packed away 23 Bcf less each week in the first 17 weeks of the injection season than we have in years past. Put another way, we have put 396 Bcf less into storage this season than would be indicated by the 5 year average.
On to the wrap and just briefly note:
1) E&P stocks and Service names had a better-than-market week as the sideways trade oscillated north on Middle East fear driven oil, fundamentally driven natural gas, and better than expected early 2Q12 reporting season results from NE, BHI, and SLB.
2) Natural gas closed over $3 for the first time since February for the front month. Note that the forward strip did not advance as rapidly but is did move higher to $3.40.
3) Natural gas directed rigs are not the only thing that is tumbling, non commercial traders (speculators) who have been short natural gas continued to pull the injection handles at an increasing pace. I'm sure some will reload in the Fall but that trade is quite long in the tooth and changing dynamics of the natural gas macro are going to leave some traders without heads.
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