Just a quick update on the track of natural gas storage trends......
Total gas in storage came in at 3,308 Bcf, ahead 47 Bcf ahead of the last week's storage level and the Street's guess. The trend in storage builds vs. the 5-year average remains downward sloping.
However, the rate of the downward trend is decelerating.
Demand for natural gas likely abated with the recent ebb in summer temperatures, noting that recent cooling degree days has been below normal. I can tell you first hand that in the mid-Atlantic region temperatures have been more moderate. This slowdown in demand has been offset somewhat from reduced drilling activity, as gas drilling rigs- according to Baker Hughes- continue to fall. Unless there is a significant reduction in demand, I still expect natural storage levels to ease into the 5-year average later this year.
Total gas in storage came in at 3,308 Bcf, ahead 47 Bcf ahead of the last week's storage level and the Street's guess. The trend in storage builds vs. the 5-year average remains downward sloping.
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