Another Bearish US Gas Storage Report Expected Later This Week

The US natural gas storage inventory injections for week ending 20 Oct due for release later this week are projected in the range of 80-85bcf according to S&P Global Commodity Insights' gas supply-demand and storage models.

• This compares with a five-year-average build of 66bcf in the corresponding week and follows on from the bearish natural gas storage report for the week ended 13 Oct. Last week the EIA weekly gas inventories showed a build of +97bcf compared to the five-year average for this time of year of +85bcf. The total US inventories were above normal at 3,626bcf compared to the average of 3,429bcf.
• The early BNEF view was last week suggesting an injection of 76Bcf for the week ending 20 October.
• High storage levels before the winter heating season have helped drive the front month Henry Hub price down from a high of about 3.45$/mmbtu on 11 Oct down to 2.91$/mmbtu.