Natural Gas injection dulls Gustav’s Price Power
Some more good news for natural gas consumers: the weekly EIA report shows inventories grew much faster than usual for this time of year. A gain of 102 billion cubic feet (bcf) brought total storage levels to 2,757 bcf. It is still 6.8% below last year’s level but now a substantial 2.6% above the 5-year average. This development temporarily took the wind out of Tropical Storm Gustav’s ability to increase the commodity’s price. But if recent NWS forecasts are correct, Gustav will become a hurricane again before it hits Jamaica and spins through the Caribbean glancing Cuba’s western tip and then building up steam before a direct hit on Gulf of Mexico oil and gas installations south of Louisiana as a major hurricane. On top of Gustav, another Tropical Storm has developed (Hanna) northeast of the Leeward Islands. The waiting game continues and the stakes are high.