Natural Gas futures slipped this morning as traders weighed yesterday’s injection, which boosted inventories to 3.908TCF, which is an all time record. For two consecutive weeks EIA has reported injections that have been higher than the 5-year average, bucking the underperforming trend from the summer. Moreover, it is likely that there will be additional injections this year in light of moderating temperatures in the 6-14 day horizon. Nevertheless, we have seen some mixed weather forecasts from different outfits, so front month prices will be quite volatile during the next couple of weeks.
Despite strong nuclear plant outages, Sandy’s lagging effects are still being felt by millions of people who are still without power. Therefore, demand for natural gas has been lower in the NE.