StorageThe storage figure yesterday was disappointing. Only 12 Bcf less than last year and even less for the 5 yr. Both the one yr. and 5 yr. narrowed by only ½ a percent. On a brighter note, last year’s storage injections for the next 4 weeks were biggies, -106, 98, 95, and 100 in that order. It will be quite interesting to see how the injections this year will stack up against those figures. Also note that last year at this time we had more production and less demand.
Assuming we have 4 level injections at 62Bcf per week it will still be insufficient to clear the surplus “year over year” until near the end of storage season. The 5 yr. may not come into balance until 3 weeks into Nov. and I lean to the 5 yr. as being the important number. But it clearly shows what a bloody drag this surplus has had on the market. It’s taken the whole spring summer and fall to clear it.
It gives one pause to think that the rig count actually made a turn around. Personally I think they were out of the blocks too soon. At least today the rig count only went up 1.
BigSmoke, can you give more technicals on the rebalancing you alluded to?
Slacker, very interesting post on Jones Trading. Thank you.