Natural Gas Inventory Report Slows Price Hikes

Commodities & Metals

Published: September 5, 2013 10:45 am

Last Updated: April 28, 2020 2:20 am

The U.S. Energy Information Administration (EIA) today reported the U.S. natural gas stocks increased by 58 billion cubic feet last week, compared with an expected build of about 53 billion to 57 billion cubic feet anticipated by analysts. Natural gas futures prices were trading up by about 0.5% in advance of the EIA’s report, at around $3.70 per million BTUs, and slipped to around $3.62 immediately following the EIA report.

The EIA reported that U.S. working stocks of natural gas totaled 3.19 trillion cubic feet, about 43 billion cubic feet higher than the five-year average of 3.15 trillion cubic feet. Working gas in storage totaled 3.4 trillion cubic feet for the same period a year ago. Natural gas inventories remain roughly in the middle of the five-year range.

Natural gas prices posted a five-week high on Tuesday and predictions for a spell of late-season heat in the Midwest and parts of the Northeast have kept prices moving a bit higher since then. The warmer temperatures should increase demand for cooling, but late-summer heat is not usually as strong as mid-summer heat and demand could fall as quickly as it rose.

Here is how stocks of the largest U.S. natural gas producers are reacting to today’s report:

Exxon Mobil Corp. (NYSE: XOM), the country’s largest producer of natural gas, is up about 0.1%, at $87.78 in a 52-week range of $84.70 to $95.49.

Chesapeake Energy Corp. (NYSE: CHK) is down 0.1%, at $26.09 in a 52-week range of $16.23 to $26.63.

EOG Resources Inc. (NYSE: EOG) is up 1.1%, at $162.22 in a 52-week range of $107.76 to $162.62. The high was set earlier Thursday morning.

The U.S. Natural Gas Fund (NYSEMKT: UNG) is down 1.4%, at $19.03 in a 52-week range of $16.59 to $24.09. The Market Vectors Oil Services ETF (NYSEMKT: OIH) is up 1.2%, at $46.34 in a 52-week range of $36.24 to $46.78. The first fund tracks spot prices; the second includes major drillers and services companies.

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