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Ahead of the Bell: Natural gas reserve boost seen



By AP
06 November 2008 @ 06:19 am EST

NEW YORK - The Energy Department will likely report a 20 billion to 25 billion cubic feet boost to natural gas reserves on Thursday for the week ended Oct. 31, according to a survey by Platts, the energy information arm of McGraw-Hill Cos.

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The Energy Information Administration releases its weekly report at 10:35 EST.

Last Thursday, the EIA said natural gas inventories held in underground storage in the lower 48 states rose by 46 billion cubic feet to about 3.39 trillion cubic feet for the week ending Oct. 24.

FirstEnergy Capital analyst Martin King said in addition to average heating demand for this time of the year, "price incentives to inject were largely absent from the market last week with cash prices running ahead of futures and regional pricing differentials, especially in the Northeast--hardly noteworthy for storage injection."

FTI Consulting analyst Andrew Weissman said increased demand for gas-fired generation, to compensate for a number of nuclear outages in the Southeast, may also have cut into the pace of injections for the week.

Copyright 2008 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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