Working gas in storage was 1,638 Bcf as of Friday, March 26, 2010, according to EIA estimates. This represents a net increase of 12 Bcf from the previous week. Stocks were 16 Bcf less than last year at this time and 160 Bcf above the 5-year average of 1,478 Bcf.
Storage report
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Analysts expected a boost of between 14 billion and 18 billion cubic feet, according to a survey by Platts, the energy information arm of McGraw-Hill Cos. Mild weather in March ended early the withdrawal period for natural gas as heating demand waned. Inventories last week were 11 percent above the five-year average, up from 8 percent the previous week.
UNG soared more than 5% today after an impressive plunge and series of negative closes during the past weeks. This is not enough for my long position that I have not closed yet hoping at least in a rebound.
Longer term I am positive about gas, but UNG unfortunately is likely a wrong way to invest in natural gas for the contango issues the ETF has. Some say that the bullish day for the ETF may be short-lived as the outlook for Natural Gas is weak. Others say that shorts on UNG will be squeezed and that UNG has the potential to go back up to $9.
The Natural Gas ETF (UNG) Surges Although The Outlook Is Still Bearish
Natural Gas Rises Most in Two Months on Slower Supply Increase
How UNG Lost 20% In March
The following news is interesting:
Year-to-date consumption of natural gas in 2010 compared to 2009 indicates growth of about 3.7 percent on an average daily basis, according to Bentek Energy. While industrial demand is up about 1.8 percent, power generation (+4.6 percent) and residential/commercial (+3.9 percent) lead the consumption growth and are, of course, tied to temperature sensitive loads during the colder than normal months of January and February.
LINK
Other news:
The Oil-to-Natural Gas Ratio Is Spiking Again" http://soc.li/e95Cypb
Oil to Natural Gas Ratio: Many Ships Have Been Broken On This Rock
One of the biggest money-losing maxims of the past 5 years is the old “Oil Historically Trades at an 8 to 1 Ratio to Natural Gas” chestnut. I’ve also heard that it’s more like 10 to 1. Whatever.
Time to forget this ratio for good.
Offshore Drillers See Swelling M&A Interest
Obama permits offshore oil drilling
NATURAL GAS MARKET INDICATORS
Natural Gas - A Small Example of Acceptable Fraud
The Coming Age of Natural Gas
Media reports have specified that prominent amount of natural gas has been committed by Qatar for China and India.
Petroleum and Mineral Resources Minister Abdulla bin Hamad al-Attiyah told that a shipment contract of 12 tons of liquefied natural gas to China had already been signed by his country and the shipment contract of seven tons of liquefied natural gas had been signed to India.
For another ton of gas, Qatar and India are discussing over the shipment.
The Balance Of Power In The World’s Gas Markets and United States Natural Gas Fund (UNG)
Fracking Makes Natural Gas No Cleaner than Coal, Study Says
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