Natural Gas Inventory Declines Less Than Expected

Energy

Published: April 11, 2013 10:45 am

Last Updated: April 28, 2020 2:18 am

The U.S. Energy Information Administration (EIA) today reported the U.S. natural gas stocks declined by 14 billion cubic feet last week, less than the decline of 21 billion cubic feet anticipated by analysts. Natural gas futures prices were up less than 1% in advance of the EIA’s report, at around $4.09 per million BTUs, but rose to around $4.11 immediately following the EIA report.

The EIA reported that U.S. working stocks of natural gas totaled 1.67 trillion cubic feet, about 66 billion cubic feet lower than the five-year average of 1.74 trillion cubic feet. Working gas in storage totaled 2.48 trillion cubic feet for the same period a year ago.

The cold weather that has driven demand for natural gas largely moderated last week, leading to a small draw on natural gas supplies. For the coming week temperatures across the northern plans are expected to drop sharply and much of the south and east will experience above-normal temperatures. May natural gas futures posted a high of $4.11 per million BTUs on Monday, the highest finish for natural gas since August 2011.

Withdrawals of natural gas are expected to leave storage levels about 33% below the 2012 record level of 2.48 trillion cubic feet at the end of last year’s heating season.

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 0.1% to $88.79, in a 52-week range of $77.13 to $93.67.

Chesapeake Energy Corp. (NYSE: CHK) is down about 0.4%, at $20.19 in a 52-week range of $13.32 to $22.97.

EOG Resources Inc. (NYSE: EOG) is up fractionally, at $128.63 in a 52-week range of $82.48 to $138.20.

The U.S. Natural Gas Fund (NYSEMKT: UNG) is up 0.9%, at $22.48 in a 52-week range of $14.25 to $23.38. The Market Vectors Oil Services ETF (NYSEMKT: OIH) is up about 0.3%, at $43.13 in a 52-week range of $32.54 to $45.12. The first fund tracks spot prices; the second includes major drillers and services companies.

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