Thursday, May 28, 2009

Natural Gas Inventory Report: Storage Overflow!

Natural gas inventories were released today. The chart below shows the comparison between the current year and last year (red curve), as well as the 5-year average.

Note how the curve is sticking above the top of the 5-year average channel. Natural gas continues to be a great short here, particularly on this silly spike of $0.25 today (current price is $3.88). At this pace there will be no where to store it by the middle/end of ther summer.

Since we started posting about going short on NG a couple of weeks ago, we are up +40%/+50%.

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