Thursday Night Gas Report Thoughts


Natural gas soared in the wake of a "in line" storage report. The EIA reported storage fell 120 Bcf, the Street was at 118 Bcf and I was looking for 120 to 130 Bcf. Obviously traders just wanted to get this number out of the way so they could focus on what should be one of the last big withdrawals next week. Gas also traded higher with continuing strength in oil which rallied to a five week high, the result of OPEC cut concerns / Hugo's threatened embargo / resurgent cold weather and a modicum of short covering.  Near term I think this rally is primarily weather driven and that it will quickly fade with the cold. This will be a short one else I'll lose my valentine which simply won't work for me. 


Here's What Storage Looks Like Now:



Random Demand Graphs - I'd add commentary but again, its Valentines Day and these are pretty self-explanatory.




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