CNBC is yanking people's chains. If similar to last season's build will be five more injections before the total starts pulling down. Per the EIA web site, last build date for 2011 was for the week ended 11/18. Yesterday's numbers were for week ended 10/12. So five weeks left to go. Producers are continuing to sell because prices are high. Why wouldn't push as much as they can now? We may not have hit the max in years past, but then again the inventory level has never been this high this early in the build. Ever.
Well, then it will reach almost max capacity. But, historically it hasn't happened including last year. Key note from today' EIA report was that preview of heating season demand was not fantastic while storage level was still high. 2:30PM report will provide you with more data.
Typically, we should be seeing storage level going down starting November to March 13 time frame. Last year, you can see that storage level was very high in comparison to previous year. Right now, majority of Wall St. is betting on winter being COLD! Next 2 weeks is going to put some pressure on them as weather is forecasted to be warmer.
They won't reach capacity, and capacity should increase with all these new pipelines etc. When they get close to full, they will just shut down more rigs. These guys know what they are doing. Where do you think all that gas is currently going from those rigs already drilled but not hooked up to the east and north east coast?