On Thursday 19th September the US EIA released a report stating that US natural gas stocks increased by 46 billion ft 3 over the last week. Before the report was released, natural gas futures prices were trading at approximately US$ 3.75 /million btu and rose by approximately 1% to US% 3.79 immediately after the report’s release.
The report stated that US working stocks of natural gas totalled 3.3 trillion ft3, approximately 18 million ft3 higher than the five year average. Working gas in storage was reported at 3.49 trillion ft3 for the same period a year ago. Natural gas inventories remain roughly in the middle of the five year range. The five year average increase for the analysis period is 74 billion ft3.
Over the last week, natural gas prices have rise to two month highs, partly due to expectations of a smaller than usual inventory increase, however, that is not what was reported to traders. Natural gas storage injections ahead of the winter heating season have not yet really begun. When the injections do begin, prices might have a hard time staying at this level, unless an unusually cool weather front comes in or there is a disruption in gas production in the Gulf of Mexico.
Adapted from press release by Claira Lloyd
Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/20092013/eia_report_causes_natural_gas_price_changes/