Betting against nat gas was last years trade - is amazing so many people just don't get it
go and read the conference calls of the largest nat gas producers. With an 80% reduction in drilling the supply to going to flatten out while demand is increasing. Most of those companies are looking for $5 gas before increasing drilling. The storage numbers show increased drops in storage on temps that aren't that cold yet. Last week was a moderate week - if there is a rather large drop in nat gas storage I think that more people are going to start to get it. This week is very cold (over an area with 140 million people) so I don't care what is happening for 2 million people in denver. If a very cold week produces a decline of 250 BCF in storage it won't be long before the big nat gas surplus is back to average levels for this time of the year. When nat gas is at the 5 year average prices should be about $5
Pin, to me todays number was bullish as the draw included 3 warm days and a mild east coast. Underlying demand was higher than projected. maybe today's afternoon report will shed some light. Oil is higher today as well.