TD Notes The Gas Line
Weekly Gas Charts
Lower-Than-Expected Build Drives Prices Higher. This morning, we saw the inventory build come in 15 Bcf lower than the market was expecting. This follows two weeks of builds which came in meaningfully higher than expected. Freeport LNG remains sidelined for the next couple of months, however, significant supply growth remains elusive while domestic U.S. demand remains strong.
Quick Summary: Gas inventories increased 60 Bcf w/w, which was lower than the consensus expectation for a 75 Bcf injection and below the five-year average of 74 Bcf. Storage is 12% below the five-year average and 10% below year-ago levels. U.S. storage levels remain tight when compared with domestic/foreign demand (21% below normal levels as measured in days of supply, Exhibit 3). On this metric, we are still charting record-lows for this time of the year. Expectations for next week are for an injection of 40-60 Bcf, which compares with the five-year average injection of 52 Bcf.