The momentum from the last two trading sessions carried over today’s early trading ahead of the storage data release. EIA reported that 80Bcf were injected into storage during the week ending on 9/21/2012. Analysts were expecting an injection of 75Bcf, so the injection was slightly above expectations. Working gas in underground storage stands at 3,496Bcf, 9% above last year and 8.6% above the 5-yr average.
Nuclear outages continue to weigh on prices and weather will start playing a more important role in the coming weeks. Nevertheless, current price levels favors coal burn, so we expect to see some resistance at this level.
After the report, Natural Gas held to yesterday’s gains, but slowly traders have been chipping at them. Currently we are flat in the front and slightly down in the back.
ERCOT Heat Rates have edged higher since yesterday, ahead of tomorrow’s PUCT meeting, where a decision on multiyear caps could be made.