Natural gas storage numbers this week showed yet another injection of 20Bcf, bringing the total to 3.83Tcf. The knw maximum is 3.85Tcf. Obviously these injections will have to stop if the maximum is reached.
The following chart compares this year's storage with last year and the 5-year average channel.
Storage this year is 10% higher than last year, 6.4% higher than the maximum of the 5-year average. Note also that on the chart above, storage was already decreasing this time last year.
Contrary to what the TV parade says, production continues very healthy. The spot price may collapse, UNG not necessarily since it operates on the future month contract. But going up will be very, very tough. Note that we posted UNG straddles a couple of days ago.