Natural Gas Futures - Jun 13 (NGM3)

Can someone tell me why we would need AC when we've all been waiting a long 9 months for spring & summer to come? Wouldn't you rather be outside enjoying this beautiful weather than stuck inside? How we quickly skipped the shoulder season and went from high heating demand to high cooling demand simply puzzles me. Perhaps there is not enough to write about these days....

More near term bearish news on NG. From Tonights Platts Natural Gas Daily (for 22-May-13) -- Gas storage may hit capacity before season ends: US working gas storage inventories might bump up against available capacity of around 4.2 Tcf before the traditional injection season ends next fall, Tudor Pickering Holt analyst Dave Pursell said Tuesday. Even though current storage levels of 1.964 Tcf are a "massive 26%" below year-ago levels, weekly storage data from the Energy Information Administration over the past four weeks indicate that the market is over-supplied by nearly 3 Bcf/d due to "larger injections than our longer-term weather model predicted," Pursell said. "Last week's reported 99-Bcf injection, a record for early May, was further confirmation of a weak gas market," said Pursell. "We attribute much of this underperformance vs. norms to gas price increasing from the low $3's/Mcf in mid-February to $4.50/Mcf recently, causing gas to give some market share gains back to coal." "So if the market remains 3 Bcf/d oversupplied but the summer is another hot one, storage would end at around 4.1 Tcf," said Pursell. And in the event of normal summer temperatures, inventories could fill to EIA's estimated peak working capacity of 4.2 Tcf before the cooling season ends in late October or early November. That, Pursell said, could put downward pressure on the market and send gas prices back to the $3.50/Mcf area, thereby "discouraging rig count/activity growth." -- Anastasia Gnezditskaia

Now that the Tornados have finally passed, can we see NG go down please?? From Tonights Platts Natural Gas Daily (22-May-13) -- In the cash market, a force majeurewas lifted Tuesday on Southern Star Central Gas Pipeline's system after a tornado that touched down in the Oklahoma City area Monday caused some damage and isolated most of Line Segment 340. Platts unit Bentek Energy said the force majeure shut in several production points that had averaged 40,000 Mcf/d for the previous 30 days. Southern Star said the pipeline was operating normally as of late Tuesday after the affected segment had been isolated. The company said the majority of Southern Star's customers did not lose supply. Additionally, a report from the National Response Center late Monday stated that a caller reported that "a tornado blew over the support structure of a 24-inch steel pipeline," causing a release of natural gas on the Oklahoma Natural Gas pipeline. Oklahoma Gas Transmission's Oneok zone and Southern Star prices bucked the national trend and fell below $4, down a couple of cents each.