Natural Gas Inventories

by: Bespoke Investment Group June 05, 2008 | about stocks: UNG    

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Today's release of Natural Gas in storage showed that inventories increased during the weak by 105 bcf, which was just slightly more than expected. 

As the chart below indicates, natural gas in storage remains at above average levels and has not only been rising, but it has also been rising at a greater than average rate.  In early April inventories were 68 bcf above their long-term average.  Following today's report, inventories have increased to 138 bcf above average.

Nat_gas_inventories

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This article has 6 comments:

  •  
    Jun 05 05:28 PM
    An Amaranth inspired, peak natural gas...
    Reply | Link to Comment
  •  
    Jun 05 08:39 PM
    This is nothing but Alpha Flunkyism garbage..do some analysis, for god's sake!!
    Reply | Link to Comment
  •  
    Jun 06 01:02 PM
    ...and therefore...what?
    Reply | Link to Comment
  •  
    Jun 06 11:19 PM
    How about charting the number of days' supply currently in storage rather than the absolute amount of gas? Annual increases in consumption makes the average 5-year or ten year absolute storage levels less relevant as a baseline reference.
    Reply | Link to Comment
  •  
    Jun 07 01:20 AM
    ASAP is on to something & the move in NGAS since NOV ($5.25) to today ($12.70) confirms the need to speak in other than nominal terms!

    RIGHT ON ASAP
    Reply | Link to Comment
  •  
    Jun 07 05:06 AM
    ASAP does appear to be on to something. Upon reflection, I don't ever recall seeing such a number put out; only absolute volume vs. some historical 5/10 year figure.

    Generally speaking, here, in the Midwest, temps are running much higher than normal, for the time of year, which could well lead to increased demand because of increased utility use for incremental power needs. Also, hurricane season has just started, and the last couple of years have been pretty much "non-events"... hurricane-wise. How long can that bullet be continued to be dodged? In short, any "excess" in storage could evaporate fairly quickly.

    JS
    Reply | Link to Comment
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