Alternative Investments Review

The all important storage report for natural gas was released today and it indicated that supplies grew less than expected.  Analysts predicted an increase of 14 to 18 billion cubic feet but supplies only grew by 12.  This number also came before the holiday weekend so traders would want to clear their positions.  The storage report also showed that supplies were 16 bcf less than last year at this time.  However, supplies are 160 bcf above the five year moving average. 

To read the weekly storage report from the Energy Department, please click here:

http://ir.eia.doe.gov/ngs/ngs.html

To read a related Business Week article, please click here:

http://www.businessweek.com/ap/financialnews/D9EQBADO0.htm

Jim Sutliff

Natural Gas storage increased 11 billion cubic feet last week and that was in line with analyst expectations.  This marked the first increase in storage levels for the year and it helped send prices for the April contract below the $4 dollar mark.  An increased rig count will also work to lower prices in the short term.

To read an article by The Street, please click here:

http://www.thestreet.com/story/10711362/1/natural-gas-futures-drop-3.html?cm_ven=GOOGLEN

James Sutliff

Natural Gas fell to a five month low when supply reports indicated a drop less than expected.  The decline was only 11 billion cubic feet which was much lower than the 30 that was predicted.  Also, the weather reports indicate higher than normal temperatures over the next week to ten days.  This will move up the timeframe for the refill season and could make the next two inventory reports positive.   Rig counts are also expected to remain stable or increase in numbers.

To read a Business Week article, please click here:

http://www.businessweek.com/news/2010-03-18/natural-gas-extends-decline-after-u-s-inventory-report.html

Jim Sutliff