Natural Gas Storage Natural gas prices are on a tear, and every small dip is being aggressively bought by the traders. Technically, the current rally should rise to the next resistance level of $2.95/MMBtu, but do the fundamentals justify the rise? (Click to enlarge) Natural gas supply The latest U.S. Energy Information Administration’s Natural gas weekly update reports a drop in production in all the seven shale-producing regions. The production is 1 percent below last year, averaging 73 billion cubic feet per day (Bcf/d). However, drilling is likely to increase with a sharp rise in natural gas prices. Natural gas storage The injections into the storage have slowed, compared to both the previous year and the 5-year average. The stocks exceeded 3,000 billion cubic feet (Bcf), but year-over-year, the storage surplus has fallen for eleven consecutive weeks. Compared to last year, the stocks are 618 Bcf higher and are […]