EIA INSIGHTS November 1, 2018
Injection Less Than Expectations
The EIA reported a 48 Bcf Injection for the week ending October 26, 2018. The injection was greater than the average, 39 Bcf, for this week of the year, and less than the average of expectations of a 52 Bcf injection. Expectations had a range from a 38 Bcf injection to a 66 Bcf injection.
Prices initially dropped with the release of the report and were choppy around the lows ending the day down 2 cents.
As we expected, Storage at the end of the Injection Season is close to 3,200 Bcf. This will be the lowest storage level in the last 12 years. But despite the low storage levels prices are still range bound between $3.15 and $3.40. We still need to observe the storage levels and price reactions to the weather at the beginning of the Winter Season in early November before we can make recommendations regarding price direction.
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