After a run of six consecutive weeks with a reported natural gas build over 100 bcf, the streak finally ended with today's EIA report that showed we injected 98 bcf for the week ending 6/21.
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This turned out dead-on with the estimate that we had held since the start of this week, outlined in our Monday weekly report.
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While the build was well above the 5-year average build, it was reflective of much tighter supply / demand balances than we have seen for a long time, as the higher number was more a product of just being in a lower demand weather regime.
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Many parts of the country saw cooler than normal temperatures, limiting natural gas demand.
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The confirmation of tighter supply/demand balances helped prices stage a rally today, with the new prompt month August contract rising nearly 2.5% on the day.
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Forecast demand is also on the increase, with much more above normal temperature coverage in the near term, boosting natural gas demand.
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