Last year at this time only 23 BCF was injected into storage. This week, analysts expected an 88 BCF build, but instead we saw a whopping 93 BCF. This was enough to send the markets lower again this morning. The prompt contract NG Nov 10, was down over $.15 cents to $5.37 per MMBTU. I have been saying it for weeks, and still believe that what we are seeing is an excellent opportunity for business electricity users to lock in very attractive rates, ahead of what are shaping up to be historic elections in November. We’ll know in a few weeks if the outcome of the elections is enough to improve economic outlooks, and send prices higher.
Working gas in storage was 3,683 Bcf as of Friday, October 15, 2010, according to EIA estimates. This represents a net increase of 93 Bcf from the previous week. Stocks were 48 Bcf less than last year at this time and 286 Bcf above the 5-year average of 3,397 Bcf. In the East Region, stocks were 60 Bcf above the 5-year average following net injections of 51 Bcf. Stocks in the Producing Region were 176 Bcf above the 5-year average of 985 Bcf after a net injection of 37 Bcf. Stocks in the West Region were 51 Bcf above the 5-year average after a net addition of 5 Bcf. At 3,683 Bcf, total working gas is within the 5-year historical range.