Natural gas in storage fell below the five-year average last week for the first time since the week of June 4, 2004. This is surprising because there was nearly 3.5 TCFG in storage at the beginning of heating season in the Fall of 2007, the most ever reported.
Since the week of November 9, 2007, storage has declined 2.3 TCFG compared with the 5–year average decline of less than 2.0 TCFG, and decline one year ago of only 1.86 TCFG.
The extra 300 BCFG is attributible to either greater consumption or less production, or more likely a combination of the two factors. Despite this warning sign, the price of natural gas on the NYME - BTU vs BTU - is still quite low compared to the price of crude oil, already soaring over $110 per barrel. Article contributed by Eric Wilder
