The U.S. Energy Information Agency reported an 85 BCF injection into natural gas storage this morning. This sent the prompt NG NOV 10 contract down over $.17 cents, to $3.69 per MMBTU, and that is where the market sits as I write this post. See details quoted from the EIA website below.
With regard to commercial and industrial electricity prices, this means another week of opportunity for business electricity users to hedge their risk while we bounce of a natural market floor. The elections, or lame duck congress may present a turning point in the market that could push prices out of this historically low range.
Working gas in storage was 3,499 Bcf as of Friday, October 1, 2010, according to EIA estimates. This represents a net increase of 85 Bcf from the previous week. Stocks were 149 Bcf less than last year at this time and 220 Bcf above the 5-year average of 3,279 Bcf. In the East Region, stocks were 36 Bcf above the 5-year average following net injections of 53 Bcf. Stocks in the Producing Region were 131 Bcf above the 5-year average of 951 Bcf after a net injection of 32 Bcf. Stocks in the West Region were 52 Bcf above the 5-year average after no net change. At 3,499 Bcf, total working gas is within the 5-year historical range.
