Natural gas storage levels recovering slowly, impacting market prices
Natural gas storage level recovery is slowest in years; market prices predicted to remain high.
Market fundamentals, including historical injection patterns, strongly suggest that natural gas prices are likely to remain at current levels, or higher, for the balance of the year - and probably beyond.
Four weeks into the 2014 injection season, natural gas storage is 28% below the previous lowest inventories, (at the same time in 2008). Comparing our gas injection history from recent years is one indicator of likely market prices in the foreseeable future.
Our energy risk management partner, EMEX (Energy Market Exchange) has posted a detailed update on this important topic. Click the above graph to see the full report on the EMEX blog.