Despite record stocks, natural gas prices surge to five-year high
Last week, Hurricane Delta tracked across the Gulf of Mexico following a similar trajectory to Hurricane Laura over a month ago, through the primary offshore drilling region off the coast of Texas and Louisiana. As a safety precaution, offshore platforms were again evacuated and idled, halting drilling ahead of the storm, but that has not stalled the seasonal build of gas in underground storage.
With national gas inventory now exceeding 3,830 billion cubic feet (bcf), we are testing the high end of stocks and stand poised to set a new record with several weeks left in the traditional buildup before the official start of heating season. If the market can average a weekly increase of 75 bcf through the end of October, we should start the winter months with over 4 trillion bcf in storage, a five-year high.
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