great chart, interesting comment hope this comes through ...
https://www.wallstreetbear.com/board/view.php?topic=114573#420566
NG is simply ignoring dangerous signs here
wrs - Thu, Apr 25, 2013 - 12:27 PM
"This chart goes back before the big price spike in 2008 and covers the highest ever price as well as the lowest ever price. I have added two horizontal lines. There are three important lines with respect to the storage levels. The light blue line is the total NG in storage divided by 10 in Bcf. The red line is the current storage level in Bcf with respect to last year. Currently that stands at slightly below 800Bcf less. The dark blue line is the current storage level with respect to the 5 year avearge. Currently that is at it's lowest point just as is the red line.
We are seeing low injection levels due to a combination of lower production and higher use. There are a number of Nukes off line right now and that is contributing to the lowered injection levels. However, the injection rates are lower than last year and they were exceptionally low last year. If current consumption continues and current production doesn't increase, the storage levels will continue to drop to dangerous levels.
The market is not recognizing the severity of the low storage levels yet but when it does, the response to that recognition should be a price spike that exceeds that of 2008.
It should also lead to a complete collapse of the LNG market and any stocks dependent upon cheap NG here in the US. That would damage petrochemical producers severely. What should be kept in mind here is that consumption today is much higher than it was when the price spiked in 2008. It is also not possible to reduce consumption rapidly because it's what gives us most of our electricity. A little over a year ago they were yapping about storage getting full and NG being free. Well now the storage is not filling up and is more likely to get to critically low levels this summer, resulting in extremely high electricity prices."
