Injections below expectations
Injections below expectations – The EIA reported a natural gas injection of 73 bcf compared to market expectations (as per Bloomberg) of 80 bcf. This week’s injection was higher than the 67 bcf last year and the five-year average of 70 bcf. Total storage now stands at 3,340 bcf, or 5.0% below last year’s level of 3,516 bcf but 6.2% above the five-year average of 3,145 bcf.
Cooling demand finally “cooling off” – This year has had a relatively high number of cooling degree days totaling 1,269 days versus the five-year average of 1,163 and well above last year’s 1,052. This has supported a 7% lift in natural gas demand from electric generation year over year (EIA). Gas demand from power generation is estimated at 20.2 bcf/d in 2010, accounting for roughly 30% of total forecasted U.S. gas production.