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US natural gas inventory gains

Hydrocarbon Engineering,

The US Energy Information Administration (EIA) has reported that US natural gas stocks increased by 90 million ft3, compared with an expected build of approximately 96 billion ft3.

US working stocks of natural gas totaled 3.58 trillion ft3, approximately 55 billion ft3 higher than the five year average of 3.52 trillion ft3. Working gas in storage totaled 3.72 trillion ft3 for the same period a year ago.

The five year average increase for the period is 84 billion ft3.

The futures markets seem to anticipate cool weather, because natural gas futures prices are up approximately 5.7% this week. Tropical storm Karen had little impact on Gulf of Mexico production, and the prior week build of 101 billion ft3 added to this week’s build of 90 billion ft3 should add downwards pressure to futures prices.

Stocks of the largest US natural gas producers are reacting to today’s report as follows:

ExxonMobil Corp., the country’s largest producer of natural gas, is down 0.1%, at US$ 85.05 in a 52 week range of US$ 84.70 to US$ 95.49.

Chesapeake Energy Corp. is up 1.9% at US$ 26.40 in a 52 week range of US$ 16.23 to US$ 27.46.

EOP Resources Inc. is up 1.4% at US$ 173.91 in a 52 week range of US$ 107.76 to US$ 174.86.

The US Natural Gas Fund is up 1.9% at US$ 19.30 in a 52 week range of US$ 16.59 to US$ 24.09.

The Market Vectors Oil Services ETF is up 1.6% at US$ 47.65 in a 52 week range of US$ 36.24 to US$ 48.52. The first fund tracks spot prices, the second includes major drillers and oil companies.

Edited from various sources by Emma McAleavey.

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