According to the US EIA US natural gas stocks increased by 38 billion ft3 for the week ending 25th October. Analysts originally anticipated a build of between 33 and 37 billion ft3. Before the release of the figures, natural gas futures were trading at US$ 3.59 /million BUTs and dropped to US$ 3.58 following the release.
Working stocks, storage, price and inventories
Working stocks of natural gas in the US are at 3.78 trillion ft3, approximately 58 billion ft3 higher than the five year average. Working gas in storage came to 3.9 trillion ft3 for the same period last year. Inventories of natural gas remain in the middle of the five year average.
The price is thought to have dropped as an extended spell of warmer than average temperatures are expected or most of the East and Gulf Coasts of America as well as the Midwest and parts of the Southwest.
Stock market reactions
Below is how some stocks of major gas producers reacted to the report release:
- ExxonMobil Corp., up 0.6%
- Chesapeake Energy Corp., down 1.4%.
- EOG Resources, down 1.6%.
- US Natural Gas Fund, down 1.1%.
- Market Vectors Oil Services ETF, down 0.2%.
Adapted from a press release by Claira Lloyd.