Analysts were expecting an injection between 60-70Bcf. Today EIA reported a build of 67Bcf, which met expectations for the week ending on 9/14/12. This data was below last year’s build of 89Bcf and the five-year average increase for last week of 73Bcf. With lower seasonal demand ahead of us, we could see negative pressure on prices. The only factor that could boost near-term demand for natural gas is the high level of nuclear plant outages, which currently stands at ~15,500MW.
The October-2012 contract has tested $2.745/MMBtu two times in the last two trading sessions, and during the next couple of days we could see a continuation of the bearish trend.
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