The Energy Information Administration released their weekly report Thursday, and I am just now getting around to commenting, and given the current climate, could be old news.
Such as the latest storage being from 12-16.
This paints a picture of almost normal for everywhere, except the West Coast. It will be a couple of reports, before a clearer picture of this current winter storm's impacts. BUT, the futures market seems to be ignoring these storms. Possibly due to the short duration. It's hard to believe, but temps will rebound to normal and above normal temps... by New Year's.
The futures market has dropped from last week. And I do mean... massively dropped. Why? Supply outpacing demand, would be one explanation... but why? Until I can grasp the why, I have to believe a rapidly slowing demand is the reason. Again... why?
I am talking about storage levels and demand to refill. The answer seems kind of obvious, when considering inventory levels and demand. It is likely felt that we have enough in storage to withstand this winter's demand, which means a lowering of stocks going into summer.
That would be the normal cycle, except... what about next winter and the build of inventory?
I guess we should enjoy this while we can. Consider it the calm, before the next storm!
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