U.S. natural gas storage inventory level will break record high this week

Monday, November 14, 2011

BENTEK also projects injection season to end with storage levels 60 Bcf higher than last year

BENTEK reports that U.S. natural gas injections will continue until at least the week ending Nov. 24. BENTEK’s Supply/Demand Balance Report and Natural Gas Storage Outlook anticipate strong seasonal natural gas injections during the next few weeks, completing the fill season at 3,900 Bcf. BENTEK expects a new inventory high to be set for the storage week ending Nov. 10, eclipsing the previous record of 3,840 Bcf which was set this time last year.

BENTEK is also reporting in The Market Call that storage inventories will end the season during the first week of April at 1.7 Tcf – at least 120 Bcf higher than inventory levels last year during the same period. Assuming normal weather scenarios, winter withdrawals will average 13.5 Bcf/d. If weather remains mild for the rest of November, withdrawal season could end with storage inventories exceeding 1.7 Tcf. The consensus view among weather forecasters is for a colder-than-normal winter, but not as cold as last year. However, total U.S. natural gas production is approximately 4.1 Bcf/d higher than last year and projected to continue growing through the winter withdrawal season.

Stay informed about the U.S. storage market with the following BENTEK reports:

• BENTEK’s daily Supply/Demand Balance Report provides the latest storage outlook broken out by component, including regional inventory levels; details a preliminary three-week forecast for storage injections and withdrawals; and includes a fundamental view of production, imports and demand.

• BENTEK’s Natural Gas Storage Outlook is published every Tuesday and offers a running U.S. storage estimate, forecasts the weekly EIA number using activity reported by more than 75% of all storage operators and includes previous year and five-year averages and regional fill analysis.

The Market Call is BENTEK’s monthly publication that pulls together the key market dynamics into a quick and simple view of the market for the next nine months, including a sector-by-sector analysis of the underlying factors that drive prices.

To learn more, please contact your BENTEK sales representative, call BENTEK Sales at 303-988-1320, reply to this email or click here.