Thursday, May 31, 2018
Injection Less Than Expectations
The EIA reported a 96 bcf Injection for the week ending May 25, 2018. The 96 bcf injection was at the average for this week of the year, but less than average of expectations 102 bcf injection, with a range of a 98 injection to a 107 bcf injection.
Analysts generally are of the opinion that storage will reach around 3,500 – 3,600 bcf by November but that will require some substantial above average injections this summer season, which was not the case last summer. See the Injection Distribution and Cumulative Injection charts below.
The computer weather model estimated an injection of 93 bcf suggesting supply was greater than demand during this past week.
Prices rallied with the release of the report to the 2.98 level and then fell back throughout the trading day settling back to the 2.94 level, about a 6 cent gain for the day.