EIA Insights August 16, 2018
Injection Above Expectations
The EIA reported a 33 Bcf Injection for the week ending August 10, 2018. The injection was
below the average, 51 Bcf, for this week of the year, and above the average of expectations of a 30
Bcf injection. Expectations had a range of a 17 Bcf injection to a 38 Bcf injection. It was also another
week of withdrawals from the Pacific Region and the South Region due to the hot weather.
The 33 Bcf injection was the second lowest injection for this week of the year (see the
Injection Distribution Chart below). Yet, being 3 Bcf greater than the average of expectations the
report was considered bearish for prices. Prices dropped nearly 4 cents when the report was
released, and then recovered in a narrow range for the rest of the trading day, finishing down 3
Prices have stalled around $2.94 after establishing a strong uptrend. We still suggest
consideration of trading from the long side, and especially if prices can break through the long term
trading range above $3.00.
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