Posted by zmann on November 22, 2006
I’ll make this simple so that even CNBC can understand it.
Anyone with an objective eye would have projected a withdrawal from storage today. The fact that we only got a 1 Bcf decline is shocking to me. Consensus was for a small draw despite CNBCs guest who said it was for a build and remarked that this was a bullish number. In no way is this bullish.
If anything, it demonstrates that high prices are again beating back industrial demand. Weather was much cooler than it has been yet storage was essentially unchanged. We had similar weather 3 weeks ago and managed to pull 7 bcf which was down from the prior week when weather had been warmer.
You can easily see the impact higher prices are having on demand when you look at the 2 charts below together,
CNBC, please do a little homework. Gas is lower because it should be but people see the stocks down and starting buying when you and your perma bull guest say it should be otherwise. Gassy stocks have paired their gains while gas is down after the report. You guys do a disservice to your viewers when you spin instead of report and especially on a light volume pre holiday trading session.