The Oil Drum

Sometimes lost in headline discussions of oil production and prices is the sister story for natural gas. As might be expected, natural gas prices have mirrored the price change in oil, (though in the UK, they are currently approaching $15per mcf-a much higher increase than in North America). We have just been through (and still are in, from where I type this) one of the coldest winters in recent memory-consequently we have had dropped considerably from beginning storage levels. This morning the EIA announced a 36 bcf withdrawal of natural gas for the week ended Mar 21, in line with expectations, but capping a winter of 2nd largest withdrawals since 1995. Below the fold are a few graphical snapshots of the natural gas situation. TOD readers feel free to post any relevant natural gas links below.