atural Gas Futures Gain on Speculation of Inventory Deficit
By Christine Buurma - Feb 3, 2011 9:04 AM CT

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Natural gas futures advanced for a second day in New York on speculation that a larger-than-normal reduction in gas stockpiles may leave a deficit of the fuel in storage compared with the five-year average for the first time in a year.

Gas climbed as much as 1.4 percent as the Energy Department today may report a withdrawal from inventories of 187 billion cubic feet for the week ended Jan. 28. The five-year average drop is 165 billion. The decline would need to exceed 194 billion to leave stockpiles below average for the week, based on department data.

“Like last week, we’re seeing prices rally ahead of the storage number,” said Matt Smith, an analyst with Summit Energy in Louisville, Kentucky. “The number may shift us into a deficit over the five-year average.”

Natural gas for March delivery rose 3.5 cents, or 0.8 percent, to $4.464 per million British thermal units at 9:54 a.m. on the New York Mercantile Exchange. The futures have declined 18 percent from a year ago.

Gas inventories totaled 2.542 trillion cubic feet for the week ended Jan. 21, 1.2 percent above the five-year average and 0.4 percent above year-earlier levels, according to the Energy Department. Stockpiles dropped below the average in the week ended Jan. 15, 2010, before rising above the average the following week.

Cold Weather

Colder-than-normal weather is likely in the central and eastern U.S. from Feb. 8 through Feb. 12, according to Commodity Weather Group in Bethesda, Maryland. Temperatures may be about 8 degrees below normal, Commodity Weather Group said.

“After this week’s impressive arctic surge, we are still monitoring a significant round two next week that could potentially deliver an equivalent intensity of above-normal heating demand,” Commodity Weather Group meteorologists said in a note to clients today.

The low temperature in New York on Feb. 12 may be 18 degrees Fahrenheit (minus 8 Celsius), 9 degrees below normal, according to AccuWeather Inc. in State College, Pennsylvania. The low in Chicago may be 9 degrees Fahrenheit, 11 degrees below normal.

U.S. heating demand may be 43 percent above normal from Feb. 9 through Feb. 13, according to Weather Derivatives in Belton, Missouri.

About 52 percent of U.S. households use natural gas for heating, according to the Energy Department.

To contact the reporter on this story: Christine Buurma in New York at cbuurma1@bloomberg.net;

If you have natural gas, get ready to grab your ankles..........

I've got NG, it's only used to heat water. They are the ones grabbing their **lls.
Bill has been minimal around $22.00 per month. They'll charge me that just to have it hooked up.
Oh, and I don't feel bad at all about it.

I too only use nat gas for water heating my last bill was a whopping $11
I can definately live with that

i am supplementing with my gas furnace. in dec. i used 58.00. last month i used less. this is just the furnace part. i also use gas for water heating, and cooking. if they want to jack it up, let em. i have enough pellets to get thru the winter if need be without gas!

About 52 percent of U.S. households use natural gas for heating, according to the Energy Department.

I am glad that I gave up that bad habit.

How many of them are using just electric heat? It will be a long winter for them.

I use gas for cooking and emergency backup for the Bixby. It hasn't kicked in even for supplemental heat this winter. I ran it a few times just to make sure it works last gas bill was $16.

MaryB wrote:


gas is cheaper than pellets or corn right now. i use the gas on purpose. furnace has a programable thermostat. when home, the stove runs as i like it at 75.