Natural Gas Inventory Falls as Expected, Price Stays Flat

The EIA reported that U.S. working stocks of natural gas totaled 3.8 trillion cubic feet, about 168 billion cubic feet higher than the five-year average of 3.64 trillion cubic feet. Working gas in storage totaled 3.84 trillion cubic feet for the same period a year ago.

Withdrawals are normal for this time of year, but absent much colder weather, drawdowns of this size will have little impact on gas in storage or on prices. The only good news for producers is that working gas in storage is now just slightly below last year’s level at this time.

Here’s 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 down about 0.3% at $87.48 in a 52-week range of $77.13 to $93.67.

Chesapeake Energy Corp. (NYSE: CHK) is down about 0.4% at $17.04 in a 52-week range of $13.32 to $26.09.

EOG Resources Inc. (NYSE: EOG) is down about 1% at $117.56 in a 52-week range of $82.48 to $124.49.

The US Natural Gas Fund (NYSEMKT: UNG) is up about 0.8% at $21.17 in a 52-week range of $14.25 to $31.20. The Market Vectors Oil Services ETF (NYSEMKT: OIH) is down about 0.3% at $38.89 in a 52-week range of $32.54 to $45.14. The first fund tracks spot prices; the second includes major drillers and services companies.

Paul Ausick