In a move that had an immediate bearish impact on the naturalgas market last week, the American Gas Association (AGA) decided tobegin publishing a five-year average of gas storage levels in itsweekly storage report. Since the five-year average is much closerto current levels than last year’s abnormally high working gaslevels, the new information gave the market a much different viewof industry fundamentals. The combination of the new average andlast week’s huge 97 Bcf injection knocked nearly a quarter offAugust futures prices on Wednesday.
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In a move that could have a near-term bearish impact on thenatural gas market, the American Gas Association has decided torelease a five-year average of gas storage levels in its weeklystorage report. With current storage levels significantly behindlevels last year, the decision to publish an average that is muchlower than levels last year will give the market a much differentview of industry fundamentals.
Last year clearly didn’t turn out as most industry officialsexpected, according to a new survey by the Washington InternationalEnergy Group, a Washington, D.C.-based energy consulting firm. Thefirm’s 1999 Energy Industry Outlook notes the retail marketrevolution “wimped out,” mergers were quite a bit larger thanexpected, the oil price glut was more serious than many thought,and power generation became much more important than most initiallybelieved.