Week Ended 9/29/06 – up 73 Bcf – Ties Record

73 Bcf injection ties record. Rockies storage exceeds old record by 4 bcf or almost 1%. Gas, of course, is up. Apparantly next week will bring the first arctic chill to the mid west. After about five days, forecasts are looking for warmer weather to return. All producers with Rockies gas should be impacted though with high storage levels and  no real demand either way.

The hedgies are making big bets here but I saw no evidence of an increase industrial demand (I was only expecting 60-65) so I’m not sure why gas should be $6.25 as inventories break records and supply continues to increase from Katrina recovery efforts and growing shale plays in Texas and Arkansas. It won’t last.

Early Oil Reaction To OPEC Cuts – Modest

After an initial $0.79 rally off Wednesday’s close, crude traded back through key pyschological support of $60 to $59.80 as the European markets prepared to open. I’d expect an initial jump as WS begins to assimilate the impact of these cuts (sources now are saying 4%, not the 8% I quoted earlier- I guess they have more recent data than the EIA July figures which is how I calculated my number). Anyway, I’m betting the lack of support from Saudi Arabia will temper the rally although I know there will be a pump as Europe closes. Look for further downside in natural gas price action with any injection over 65 Bcf. Will find and post consensus tomorrow but I’m guessing I’m close to the street’s range.