Stocks in underground storage continue to climb as the extreme heat of July is giving way to a milder August. Working gas stocks rose to 2,689 billion cubic feet equivalent (BCFE) as of Aug. 2, per EIA. The biggest increases were in the East and Midwest, where temperatures moderated late in July. Stocks are now 343 BCFE higher than last year and only trail the statistical long-term average by 111 BCFE.
With milder temperatures expected through the next two weeks, the market is expecting stock numbers to converge and potentially meet this five-year average. Notably, the $2.00 per mm BTU level has served as a long-term technical support level going back several decades. Basically, while prices could conceivably breach and trade below this level, statistically speaking prices normally hold this level and trade higher.