Natural Gas Build Only a Fraction of Needed Recovery

Energy

Published: April 10, 2014 11:00 am

Last Updated: April 28, 2020 2:17 am

The U.S. Energy Information Administration (EIA) reported Thursday morning that U.S. natural gas stocks increased by 4 billion cubic feet for the week ending April 4, compared with an expected increase of between 5 billion and 22 billion cubic feet anticipated by analysts. The inventory increase is the first since last November.

Natural gas futures prices were trading about flat in advance of the EIA’s report, at around $4.53 per million BTUs, and rose to $4.64 immediately following the report.

The weather is finally warming over most of the United States, but is expected to follow the usual spring pattern of bouncing from warmer to cooler. The weather is expected to cool off somewhat next week, increasing the demand for heating and likely keeping a lid on injections into storage.

The country’s natural gas supply fell below 1 trillion cubic feet a month ago for the first time since 2003. Analysts are divided on how much natural gas can be added to the nation’s inventory between now and October. None, however, sees inventories rising to the mid-November 2013 level of 3.83 trillion cubic feet.

The EIA reported that U.S. working stocks of natural gas totaled 826 billion cubic feet, about 997 billion cubic feet below the five-year average of 1.82 trillion cubic feet. Working gas in storage totaled 1.66 trillion cubic feet for the same period a year ago. Natural gas inventories have leveled off a bit but remain below the bottom of the five-year range.

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

Exxon Mobil Corp. (NYSE: XOM), the country’s largest producer of natural gas, was up about 0.4% to $97.70, in a 52-week range of $84.79 to $101.74.

Chesapeake Energy Corp. (NYSE: CHK) was up about 1.7%, at $26.74 in a 52-week range of $18.21 to $29.06.

EOG Resources Inc. (NYSE: EOG) was up 0.7% to $99.70. The 52-week range is $56.03 to $103.30.

ALSO READ: Stock Winners From Natural Gas Storage Depletion

Are You Ahead, or Behind on Retirement? (sponsor)

If you’re one of the over 4 Million Americans set to retire this year, you may want to pay attention.

Finding a financial advisor who puts your interest first can be the difference between a rich retirement and barely getting by, and today it’s easier than ever. SmartAsset’s free tool matches you with up to three fiduciary financial advisors that serve your area in minutes. Each advisor has been carefully vetted, and must act in your best interests. Start your search now.

Don’t waste another minute; get started right here and help your retirement dreams become a retirement reality.