Wednesday’s report that natural gas supplies increased by 2 billion cubic feet (bcf) to 3,835 bcf probably marks the peak in supplies heading into the winter heating season.
Stocks are now 404 bcf higher than last year at this time and 442 bcf above the 5-year average of 3,393 bcf. The recession, which has hurt industrial demand, heavy injections earlier in the year, and the mild summer in much of the country account for the surplus in the commodity used to heat just over half the homes in the US.
And that surplus goes a long way in explaining why natural gas prices remain at low levels.
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