Oil hanging on Iran, inventories secondary

The weather has turned decidedly colder for a few days as an Arctic blast hits portions of the East Coast. This has resulted in acting as a floor in Nat Gas prices at the moment with a modest amount of short covering taking place. The latest NOAA weather forecast is changing a bit with a return to more normal temperatures over the eastern half of the US by mid-month with the central part of the US still expecting above normal temperatures. This has been enough to send some of the shorts to the sidelines in a market that has been modestly oversold.

This week the EIA will release the weekly Nat Gas inventory report on its regularly scheduled day and time...Thursday, January 5th. This week I am projecting a net withdrawal of 95 BCF which is modestly below both last year and the five year average for the same week. My projection for this week is based on yet another milder than normal weather pattern over most of the country. My withdrawal forecast is based on the fact that heating related demand declined a bit last week as parts of the country experienced mostly mild conditions. My projection will be below last year’s net withdrawal level of 135 BCF and below the normal five year average net withdrawal for the same week of 106 BCF. Bottom line the inventory surplus will build again in this report period.

Currently as a new day of trading gets underway in the US markets are lower.

Dominick A Chirichella

dchirichella@mailaec.com

Energy Market Analysis is published daily by the Energy Management Institute 1324 Lexington Avenue, # 322, New York, NY 10128. Copyright 2008. Reproduction without permission is strictly prohibited. Subscriptions: $129 for annual orders. Editor in Chief: Dominick Chirichella, Publisher: Stephen Gloyd, Editor Sal Umek.

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About the Author
Dominick A. Chirichella

Energy Market Analysis is published daily by the Energy Management Institute 1324 Lexington Avenue, # 322, New York, NY 10128. Copyright 2008. Reproduction without permission is strictly prohibited. Subscriptions: $129 for annual orders. Editor in Chief: Dominick Chirichella, Publisher: Stephen Gloyd, Editor Sal Umek.

EMA has authorized Futures to publish its report once a week on Wednesday prior to the EIA release. For information on how to receive the report everyday look below.

PH: (888) 871-1207

Email info@energyinstitution.org

Subscribe here Free Trial Here

Information and opinions expressed in this publication are intended to provide general market awareness. The Energy Management Institute and the Energy Market Analysis are not responsible for any business actions, market transactions, or decisions made by its readers based on information published in this report. Readers of the Energy Market Analysis use this market information at their own risk.

This message and any attachments relate to the official business of the Energy Management Institute ("EMI") and are proprietary to EMI. This e-mail transmission may contain information that is proprietary, privileged and/or confidential and is intended exclusively for the person(s) to whom it is addressed. Any use, copying, retention or disclosure by any person other than the intended recipient or the intended recipient's designees is strictly prohibited.

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