The US Energy Information Administration today reported the US natural gas stocks rose by a total of 42 billion cubic feet, above the 33-37 billion cubic feet increase that analysts had expected. Natural gas prices responded by falling about -2% to about $2.10/thousand cubic feet.
The EIA reported that US working stocks of natural gas totaled 2.48 trillion cubic feet, about 934 billion cubic feet higher than the five-year average of 1.55 trillion cubic feet. Working gas in storage totaled 1.6 trillion cubic feet for the same period a year ago.
A warm winter, continued production increases, and now a usually low-demand period are likely to keep natural gas prices depressed at least through April and perhaps even into May. At this point, even a warmer-than-usual summer may not be enough to jack up prices for natural gas.
US natural gas stocks are about 57% higher than they were a year ago and more than 60% higher than the 5-year average. This situation does not augur well for significant gains in prices for producers.
Paul Ausick
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
