Injection slightly above expectations – The EIA reported a natural gas injection of 93 bcf, slightly above expectations (as per Bloomberg) of 88 bcf. For the comparable week, injections last year were 23 bcf with the five-year average injections at 54 bcf. Total storage now sits at 3,683 bcf, or 1.3% below last year’s level of 3,731 bcf, but 8.4% above the five-year average of 3,397 bcf.
Futures curve continues to fall – Over the past six weeks, injections have averaged 30% higher than the five-year average, despite more normalized weather. With the potential prospect of gas-on-gas competition, not only near month NYMEX gas prices continue to fall, but also the full futures curve as well, down 7% from six weeks ago and 26% from last year.