NatGas Inventories Begin Falling Fast, Cold Snap May Send Prices Surging Above $4

November 21, 2012

We examine the latest developments in the natural gas market.

Natural gas rose to a 13-month high after the Energy Information Administration reported that operators withdrew 38 billion cubic feet from storage last week, above the 23 to 27 bcf that most analysts were expecting.

The withdrawal was also bullish when compared to last year’s build of 9 bcf and the five-year average build of 9 bcf.

In turn, inventories now stand at 3,873 bcf, which is 21 bcf above the year-ago level and 163 bcf above the five-year average (calculated using a slightly different methodology than the EIA).

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