Published on: 08.23.2024
PRICES WERE MIXED YESTERDAY… oil bounced as traders, wary of going into the weekend oversold, covered and gas faltered despite another subpar inventory update from the EIA.
What We Are Watching
Yesterday, the EIA produced another subpar injection (addition) of natural gas to L48 underground natural gas storage. Whereas the normal refill for the middle of August is 49 +- 13 Bcf, the EIA reported an injection of 35 Bcf for the week ending August 16th.
Two summers ago, L48 storage was 21% below the seasonal norm. At the end of last winter, storage peaked at 30% surplus, which has since narrowed to 6%.
This season’s addition inched to 1.040 Tcf, significantly below the seasonal norm of 1.348 Tcf. At this time last year, the injection was 1.253 Tcf, 213 Bcf higher. However, considering that last year’s starting balance was much lower—1.830 Tcf compared to 2.259 Tcf—last year’s injection is 411 Bcf greater on a proportional scale.
