Gas Inventory Report BogusNatural Gas Declines as Supply Gain Tops Analyst Expectations
By Reg Curren
Sept. 18 (Bloomberg) -- Natural gas futures fell in New York after a government report showed that U.S. supplies gained more than predicted, as blackouts and factory shutdowns following Hurricane Ike reduced demand.
Inventories advanced 67 billion cubic feet in the week ended Sept. 12 to 2.972 trillion cubic feet, according to the U.S. Energy Department. Analysts had forecast an increase of 63 billion. CenterPoint Energy Inc., Houston's electricity provider, said about 57 percent of its 2.26 million customers were still without electricity today.
``People underestimated some of the industrial demand and power'' losses, said Cameron Horwitz, an analyst at SunTrust Robinson Humphrey in Houston.
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Ok, so what they are saying is the that the amount of natural gas that is normally consumed in the Texas region is off line and that has curbed demand. Give me a break....
The fact of the matter is they are reporting figures for a time period before the hurricane hit. When demand was at a normal rate and so was supply. The hurricane didn't hit until the 12th if I'm not mistaken. Wait until the next report comes out. Yes, Texas demand will be down but that's just that immediate area. The inventories will be much lower next report. Besides it snowed in the Foothills of Calgary already. Turn up those furnaces winter is coming and so is higher gas prices.