Lousy week for energy last week; expect the Street to return to work this week as they continue to retool estimates for the 2Q report season. Also exect to see a commensurate increase in news flow from the companies. Comments on natural gas follow the wrap table.
Gas Injection Improved With Heat; No Call For Real Bullishness Yet. We saw a slightly better than expected injection on Thursday attributable to much warmer than normal weather. This actually yielded noticable improvements in graphs B and C below (a rarity of late). Hard to get excited about the near term prospects for gas however when you look at absolute storage levels versus the year ago and five year averages for this week of the year and when the monthly release of supply data continues to indicate the roll in production is taking longer than expected to manifest itself. Give me a couple weeks of normal weather and injections that are 2 plus Bcfgpd or less from the average injection and we may be onto something with industrial demand but for now, its up to the weather which seems to be grudgingly becoming more summer-like. More comments in the Monday post ...
