Happy Storage Day

Today was interesting.  The EIA reported an injection of +80bcf for the week ending Oct 18th, which was quite a bit more than the expected build of +56bcf.  Moreover, this was the first time in a long time that the actual injection was more than the 5-year average for that week.

The NYMEX November front month contract was up before the report’s release at 10:30am.  With a larger injection than expected, one would think that the market would sell off, but instead it hung in tough and rallied more.  Last trade $2.54 USD/mm, up 20 cents.

The December contract was up 11 cents to $3.00 and the winter strip was up 11 cents to $2.96.

This market is showing some strength.

The weather is warmer than average for the rest of the month, yet the 2-week forecast for Heating Degree Days (a measure of heating demand) is increasing.  Although the weather has been good lately, don’t forget that winter is coming so the average temperatures are decreasing.  I know it doesn’t feel like it just yet, but it will.