Week Ended 9/29/06 – up 73 Bcf – Ties Record
Posted by zmann on October 5, 2006
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.