US natural gas inventory gains

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.

Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/10102013/us_natural_gas_inventory_gains739/