On Thursday 3rd October the US EIA reported that natural gas stocks in the US had increased by 101 billion ft3 over the last week. Analysts expected a build up of 95 billion ft3. Before the report gas was trading at US$ 3.54 /million BTUs and fell to US$ 3.50 following the release of the EIA’s report.
Total working US stocks were at 3.49 trillion ft3, which is 49 billion ft3 higher than the five year average of 3. 43 trillion ft3. Working gas storage was at 3.64 trillion ft3 at the same time last year. Inventories of natural gas remain roughly in the middle of the five year range.
Storm impact
On Wednesday 2nd October, prices for natural gas rose sharply as tropical storm Karen started developing in the Gulf of Mexico. The projected path of the storm was forecast to lie east of most of the Gulf rigs and platforms and natural gas prices lost nearly US$ 0.07 /million BTU on 3rd October.