Commodities & Metals

Natural Gas Supply Build Keeps Prices Steady

Blue flames of a gas stove
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The U.S. Energy Information Administration (EIA) reported Tuesday morning that U.S. natural gas stocks increased by 77 billion cubic feet for the week ending October 11, compared with an expected build of about 75 billion to 79 billion cubic feet anticipated by analysts. Natural gas futures prices were trading about 1% lower in advance of the EIA’s report, at around $3.64 per million BTUs, and slipped to around $3.63 immediately following the EIA report.

The EIA report was delayed several days due to the government shutdown.

The EIA reported that U.S. working stocks of natural gas totaled 3.65 trillion cubic feet, about 57 billion cubic feet higher than the five-year average of 3.6 trillion cubic feet. Working gas in storage totaled 3.77 trillion cubic feet 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 period is 75 billion cubic feet.

As of Monday’s close, natural gas prices have fallen nearly $0.20 in the past week after a slide of $0.22 in the previous week.

Here is how stocks of the largest U.S. natural gas producers reacted to this report:

Exxon Mobil Corp. (NYSE: XOM), the country’s largest producer of natural gas, was up 0.5%, at $87.64 in a 52-week range of $84.70 to $95.49.

Chesapeake Energy Corp. (NYSE: CHK) was up 0.3%, at $28.13 in a 52-week range of $16.23 to $28.71.

EOG Resources Inc. (NYSE: EOG) was up 1.3% at $186.63, after posting a new 52-week high of $188.30 earlier Tuesday morning. The 52-week low is $109.03.

The U.S. Natural Gas Fund (NYSEMKT: UNG) was down 1.3%, at $18.60 in a 52-week range of $16.59 to $24.09. The Market Vectors Oil Services ETF (NYSEMKT: OIH) was up 1.3% at $50.35, after posting a new 52-week high of $50.61. The 52-week low is $36.24. The first fund tracks spot prices; the second includes major drillers and services companies.

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