Natural Gas Inventory Drop Sends Price Higher

Energy

Published: January 17, 2013 10:44 am

Last Updated: April 28, 2020 2:19 am

The U.S. Energy Information Administration (EIA) today reported the U.S. natural gas stocks declined by 148 billion cubic feet last week, above an average expected drop of around 137 billion to 141 billion cubic feet. Natural gas futures prices were slightly higher in advance of the EIA’s report at around $3.42 per million BTUs, and rose to around $3.49 immediately following the EIA report.

The EIA reported that U.S. working stocks of natural gas totaled 3.17 trillion cubic feet, about 316 billion cubic feet higher than the five-year average of 2.85 trillion cubic feet. Working gas in storage totaled 3.3 trillion cubic feet for the same period a year ago.

Storage levels have fallen into the high end of the five-year range, even though the draw on stocks was well below last week’s draw of 201 billion cubic feet. Gas prices remain about 11% below recent highs around $3.93 per thousand cubic feet.

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 up about 0.7% at $90.05 in a 52-week range of $77.13 to $93.67.

Chesapeake Energy Corp. (NYSE: CHK) is up about 1.8% at $17.61 in a 52-week range of $13.32 to $26.09.

EOG Resources Inc. (NYSE: EOG) is up fractionally at $125.46, in a 52-week range of $82.48 to $126.45.

The U.S. Natural Gas Fund (NYSEMKT: UNG) is up 2.3% at $19.75 in a 52-week range of $14.25 to $23.92. The Market Vectors Oil Services ETF (NYSEMKT: OIH) is up about 0.3% at $41.03 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.

Is Your Money Earning the Best Possible Rate? ^(Sponsor)

Let’s face it: If your money is just sitting in a checking account, you’re losing value every single day. With most checking accounts offering little to no interest, the cash you worked so hard to save is gradually being eroded by inflation.

However, by moving that money into a high-yield savings account, you can put your cash to work, growing steadily with little to no effort on your part. In just a few clicks, you can set up a high-yield savings account and start earning interest immediately.

There are plenty of reputable banks and online platforms that offer competitive rates, and many of them come with zero fees and no minimum balance requirements. Click here to see if you’re earning the best possible rate on your money!