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Gas Storage Speaks Volumes

May 22, 2023

Chart of Working Gas Inventory vs Five-Year Average

If you were looking for proof of energy market volatility, look no further than natural gas inventories. Working natural gas in storage, as per last week’s EIA report, is 340 BCF above the five-year average. Last year in mid May there was a 310 BCF deficit and the Henry Hub spot price was above $8.00/mmbtu versus the current market which is circa $2.50/mmbtu. The correlation between spot prices and inventory remains near perfectly linear.