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The Phil Flynn Energy Report - The Natural
1/8/2013 9:18:00 AM
By: International Business Times
The natural gas market was edging higher on colder weather forecasts but was thwarted by a historic announcement. The Energy Information Admistration gave pause to natural gas bulls when it reported that US gross natural gas production hit a record high 73.54 billion cubic feet a day in October. That was up 0.4 percent from the month of September that was also upwardly revised and more than the market expected. Now when you couple that with the fact that more pipelines are coming online to get that increased gas production into Henry Hub the longer term expectations for end of season storage has to start risng. So in other words it will be hard to keep gas strong as it is clear that production is on an upward trajectory despite the weakness in price.
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