Contributor Kyle Cooper breaks down the most significant developments in last week’s natural gas market.
It’s been a couple of weeks since we’ve looked at natural gas balances. Since today is EIA Natgas Storage day it seems appropriate to check in on the progress natural gas producers are making to cut back supplies. For readers not familiar with the quirks and foibles of the natural gas market, Thursdays are big days for gas traders. On Thursday mornings at exactly 10:30AM central time the EIA posts weekly natural gas storage inventories. Like other petroleum inventory numbers, these are not forecasts. They are EIA’s best guess at inventories at the end of last week. If you are interested, here’s the URL: http://ir.eia.gov/ngs/ngs.html.
Last week EIA published a note titled Cushing Crude Oil Inventories Rising In 2012, which focuses on the 12 MMbl increase in storage levels from mid-January until end-March. It was a 43% surge, the largest over an 11 week period since 2009.