Today is storage day, and amidst the market bearishness we are keen to see if this coincides with the slow tapering off in storage and if the surplus has contributed to this market sentiment. The EIA reported an injection of +48 Bcf. As of July 30, there is 3,123 Bcf of gas in the lower 48’s storage, which is up 6.7% from the 5-year average of 2,928 Bcf, but down from last year’s historic season by a margin of 3.8%. Reuter’s prediction was interestingly overall bullish (in the sense that tapering down injections will increase supply thus decreasing demand) from last week however a lot more bullish than the way storage ended up, just again reinforcing how the market has been operating lately, and how any bullish sentiment – however minor – has been getting met with further indicators of a bearish market.

This storage report only corroborates the weak fundamentals we’ve seen from the NYMEX as of late, which opened today at $3.045 US/MM, as it continues to trend down below that $3.00 US/MM mark we saw drop once this injection season. Interestingly there was a small rally in the NYMEX, trading back at $3.106 US/MM, much closer to what it opened with yesterday. (AA)