Will 2013 bring another spike in NG? Anything in these markets is possible these days. However, will NG supplies be an issue for 2013? Let’s have a look.
Natural Gas inventories finished the 2012 Storage Injection season on October 31, 2012 at the record level of 3,923 billion cubic feet (bcf). This reflects a 3.0% year-over-year increase over 2011 inventories and is 6.8% above the five-year average (source-eia.gov). For demand to increase, we will need to see a cold winter here in Chicago and the rest of the North. Now, while I do not think we will have as mild a winter as last year here in Chicago, this Thanksgiving week is more mild than usual. Temperatures here in Chicago on Thanksgiving Day are forecast in the mid 60s with a possible temperature of 70. This may be the warmest Turkey Bowl my kids have played in.
To end this week’s Market Pulse I want to wish you and your loved ones a very safe and happy Thanksgiving holiday.
Have a prosperous trading week.
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