Natural Gas Price Drop Mostly Unchanged on Supply Data

Energy

Published: January 30, 2014 10:50 am

Last Updated: April 28, 2020 2:21 am

The U.S. Energy Information Administration (EIA) reported Thursday morning that U.S. natural gas stocks decreased by 230 billion cubic feet for the week ending January 24, compared with an expected drop of between 220 billion to 280 billion cubic feet anticipated by analysts. Natural gas futures prices were trading about 5.5% lower in advance of the EIA’s report, at around $5.13 per million BTUs, and rose to around $5.17 immediately following the report.

Natural gas prices rose 10% on Wednesday, the biggest one-day gain since June of 2012, but prices fell Thursday morning on a forecast indicating warmer weather for the next five to 10 days in the eastern and central regions of the United States. Prices are expected to be volatile as traders and hedgers seek profits from the price movements.

The EIA reported that U.S. working stocks of natural gas totaled 2.19 trillion cubic feet, about 437 billion cubic feet below the five-year average of 2.63 trillion cubic feet. Working gas in storage totaled 2.83 trillion cubic feet for the same period a year ago. Natural gas inventories remain below the bottom of the five-year range. The five-year average increase for the period is 19 billion cubic feet.

Here is how stocks of the largest U.S. natural gas producers are reacting to the new report:

Exxon Mobil Corp. (NYSE: XOM), the country’s largest producer of natural gas, was down about 1.4%, at $93.82 in a 52-week range of $84.79 to $101.74. Exxon reported lower-than-expected results before markets opened Thursday morning.

Chesapeake Energy Corp. (NYSE: CHK) was down 0.22%, at $27.11 in a 52-week range of $18.21 to $29.06.

EOG Resources Inc. (NYSE: EOG) was up 0.76% to $165.90. The 52-week range is $112.05 to $188.30.

The U.S. Natural Gas Fund (NYSEMKT: UNG) was down 5.2%, at $25.32 in a 52-week range of $16.59 to $27.05. The Market Vectors Oil Services ETF (NYSEMKT: OIH) was up about 1.1%, at $45.57 in 52-week range of $39.42 to $51.11. The first fund tracks spot prices; the second includes major drillers and services companies.

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