Natural Gas Inventory Report, June 16, 2023

The Energy Information Administration released their weekly report on yesterday.

Once again, let me focus on the Pacific Region...

Along the West Coast, prices decreased this week, but remain relatively high, particularly in California. The price at PG&E Citygate in Northern California fell 86 cents, down from $3.72/MMBtu last Wednesday to $2.86/MMBtu yesterday. The price at SoCal Citygate in Southern California decreased 16 cents from $3.29/MMBtu last Wednesday to $3.13/MMBtu yesterday. Consumption of natural gas in the electric power sector in California decreased by 7% (0.1 Bcf/d) week over week, as temperatures were relatively mild. In the Sacramento Area, temperatures averaged 68°F this week, leading to 12 fewer CDDs than last week, while in the Riverside Area, inland from Los Angeles, temperatures averaged 65°F this week, leading to 1 fewer HDD and 5 fewer CDDs than last week.

Select inventories of EU and UK...

Inventories continue to improve... over historic highs for this time of year.

NatGas Price chart...

The sky is falling...

The past 2 weeks have seen sudden spikes in EU and UK futures. This is being attributed to a host of things that have been known to take place. 

• The Dutch are shutting down the largest gas field in Europe.
• Norway is doing maintenance on their equipment.

Nevermind where the price was just 6 weeks ago. It reminds me of the gold bug syndrome. Time to talk of gloom and doom, to unload those holdings.

Until next week.