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Monday, Nov. 10, 2008
Natural Gas Storage Passes 3.4 Trillion Cu. Ft. Level
With natural gas storage reaching the seasonal comfort zone of 3.4 TCF,
all is in place for perfectly normal winter season. From here on, it is all gravy so to speak, with the exception of a few Canadian Clippers over the next four months, or sooner perhaps?
This
morning, natural gas popped up $0.44 to $7.199 per mmbtu due to the revised forecast for much colder weather than normal through much of the Midwest and the Northeast over the next two weeks.
Crude oil also shot up three bucks to $64.08 in reaction to China's massive $500 Billion stimulus program, which sent a clear signal that China's economic planners are not blinking in the face of
the world's economic downturn. There are now three massive economies, US, China and Europe, that are actively pumping significant sums of money into their respective sectors to pull the world out of
its slough of subprime despond.
In the US, the GDP brakes are on due to the demand destruction behavior of debt-averse consumers who are fearful of potential job losses and who are
"bailout-shocked". At the same time, American businesses are seeing profit margins dwindle as orders slow down- just as one would expect in a full-blown recession. Many companies are turning
their backs on financial engineering and taking a hard look at re-engineering operations to further lean their companies. The new 'Ayn Randian' hero of this era is the engineer who can turn
efficiency to profits; and, to put a plug in for our people, get more bucks out of their btu's.
All crises expose opportunities. In the next PowerNews, we will discuss the silver lining that
we see glimmering in commodities and specifically in natural gas futures.
Natural Gas Storage News- Winter Threshold Reached
According to the EIA Storage report of last Thursday: "Working gas in
storage was 3,405 Bcf as of Friday, October 31, 2008...This represents a net increase of 12 Bcf from the previous week. Stocks were 130 Bcf less than last year at this time and 78 Bcf above the 5-year
average of 3,327 Bcf."
Natural Gas Market Watch- Intraday Prices Snapshot
Here are the intraday prices on the NYMEX electronic market this morning (Monday) at about 10:40 AM for the next five months($ per mmbtu, intraday prices):
Dec.-08 $7.199 +0.442
Jan.-09 $7.370 +0.402
Feb.-09 $7.418 +0.398
Mar.-09 $6.657 +0.348
Apr.-09 $7.199 +0.307
Natural Gas Futures:
PMC 30-Day, 90-Day, 12-month Natural Gas Futures Chart
Crude Oil Watch
OPEC Basket Data was down to $53.49 per bbl last Friday, Nov. 11, 2008.
West Texas Cushing traded up $4.11 this morning to $65.15 per bbl at 9:07 AM.
NYMEX Crude front month future is up $3.04 per bbl this morning to $58.24 at 10:23 AM.
Electricity Watch
The electricity markets are trending normally.
Review the historic trends for key electric markets in the Northeast with the Day Ahead Electric pricing data charts from the PMC database, updated every Monday.
Weather
NOAA's forecast for next week indicates above average cold weather throughout the Midwest and the Northeastern US.
NOAA Forecast for Next Week
8-14 Day forecast
NOAA Forecast- 30-Days
Written and Researched by Martin Linskey; Energy Charts developed by Charles Myers.
Disclaimer: This information is provided for the use of our customers and potential customers. Power Management
Company assumes no responsibility or liability for the accuracy or completeness of pricing or information in this
document. Historical data was obtained from sources that we believe to be reliable, but we do not guarantee its
accuracy or completeness. It is not intended to provide advice or recommendation. Views are subject to change without notice. |
