The weekly data out of the Energy Information Administration for natural gas inventories is only further adding salt on top of the wound for those hoping for higher natural gas prices. The inventories grew another 54 billion cubic feet from a week ago, and this is substantially higher than last year and substantially higher than the 5-year average. This is hitting the United States Natural Gas (NYSE: UNG) and the Oil Services HOLDRs (NYSE: OIH) exchange-traded products this morning.
Working gas in storage was 3,258 Bcf as of Friday, August 21, 2009, according to EIA estimates, representing a net increase of 54 Bcf from the previous week.
Stocks were 516 Bcf higher than last year at this time and 500 Bcf above the 5-year average of 2,758 Bcf.
It seems just about all regions are seeing increases as well. In the East Region, stocks were 153 Bcf above the 5-year average following net injections of 43 Bcf. Stocks in the Producing Region were 271 Bcf above the 5-year average of 808 Bcf after a net injection of 5 Bcf. Stocks in the West Region were 76 Bcf above the 5-year average after a net addition of 6 Bcf. At 3,258 Bcf, total working gas is above the 5-year historical range.
The United States Natural Gas (NYSE: UNG) is trading down by 2.1% at $11.37 and the Oil Services HOLDRs (NYSE: OIH) is trading down 2.6% at $105.10.
JON C. OGG
August 27, 2009
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