Gas Supplies

Stockpiles of gas in storage began the cold-weather season in November at a record 3.837 trillion cubic feet, 15 percent above the five-year average, as higher production swamped a depressed market. The worst recession since the 1930s cut gas purchases by factories, chemical plants and steel mills by 9.8 percent last year through October, Energy Department data show.

“We’re below the five-year average and I expect by the end of January to be quite a bit below the average, ” Linder said. “It’s quite positive for gas.” (Emphasis mine)

Futures prices will break through $6 within the next week to 10 days, trading between $6.05 and $6.25, Linder said. In a Nov. 16 interview with Bloomberg, Linder predicted gas would reach between $5.50 and $6 in December and January on lower temperatures. Gas was trading at $4.614 at the time.

Original article on Bloomberg.