Take a look at this week’s storage report. While a net withdrawal of 94 Bcf may seem like a lot, it’s well below what was expected for a week of blistering cold across the country. The storage report lately has been all give and no take.
We’ve talked a lot in the past weeks about interpreting what you read in the NYMEX numbers, and how uncertain this has become, even for the experts. But the weekly storage report numbers are actually pretty easy to read, because speculation has nothing to do with them. They’re a straightforward indication of how much natural gas is actually being used. Compare it with the prevailing temperatures, allow a bit of play for supply estimates, and you’ve got a clear indication of where demand is. From there, it’s a pretty simple step to guessing what it says about the current state of the economy.
Sleep. wake. repeat.
The markets have been putting on a very strange show for the past few months. Case in point: the past two weeks. A week of steady growth has given way to a week of steady drops across most markets, resulting in the NYMEX natural gas price dropping below $5.00 for the first time in two years.
What this means to you. There seems to be a general unwillingness to face the reality of the current economy, a real desire to believe that a new administration, a new bailout plan, a new package is going to make the problem go away. This optimism lasts for a while, floats the markets for a bit, then dissolves. After a while, it picks up again.
And it feels very much like the people and businesses following this cycle are waiting for others to act, rather than acting themselves.
There is, however, another story being told. People are stepping up in ways they hadn’t before. Laid off workers are starting new businesses. Companies are digging for new ways to succeed. And Cost Containment Intl. customers are finally starting to listen to us about energy conservation and energy management.
If this is what it takes to make people grab for the savings that have been right at their fingertips all this time, then some good has come from bad times. People are starting to request the audits and ask for the options they passed over before, even back in July when prices where more than twice as high as today.