Natural Gas inventories are low levels not seen in a decade and it would take an unprecedented build in nat gas inventories this summer to cover expected demand for next year, according to this Bloomberg.com article.
Almost 3 trillion cubic feet of gas will need to go into storage during the warm-weather months to cover winter demand, something that’s never been done before. Bank of America Corp. and BNP Paribas SA say stockpiles may rise to less than 3.5 trillion cubic feet by the end of October, about 300 billion short of last year’s high. It will take the record production forecast for this year to get there, said FranciscoBlanch, commodities research head at Bank of America in New York. “We’re going to be in a tight situation,” Blanch said. “It will be pretty hard to build inventories to 3.5 trillion cubic feet by the end of the summer season.”
I should be over this by now, but I have always been a bit surprised at why propane doesn’t more closely track natural gas than crude.
Meanwhile in the Ukraine, the United States and Ukraine have committed to escalate their dialogue to ‘seek an outcome acceptable to Ukraine.’ WTI values had slipped to the low $101’s while Brent is in the mid $107’s. It was the first time in four days that we had seen a drop in WTI pricing.
Outmonth pricing remains flat to firm today…end of the month shenanigans not withstanding.