Natural Gas Price Dives After Storm Misses New York

Natural gas futures for February delivery traded up about 0.3% in advance of the EIA’s report, at around $2.85 per million BTUs, and fell more than 10 cents immediately following the report. Natural gas futures have tumbled from a high of around $2.98 per million BTUs since last week. The 52-week low for natural gas futures is $2.76.

When the expected snow and cold dodged New York City earlier this week, natural gas prices that had been trading at around $2.96 for March delivery dropped 10 cents and fell below $2.80 on Wednesday before making a bit of a comeback early Thursday. Natural gas prices are not expected to push higher going into next week as warmer weather is expected across most of the United States, with only a short blast of cold Arctic air due along the northern tier and in the Northeast.

Stockpiles are about 14.6% above their levels of a year ago and about 3% below the five-year average. The relatively milder weather so far in the heating season has curtailed stockpile drawdowns, compared with last year’s much colder weather.

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The EIA reported that U.S. working stocks of natural gas totaled 2.54 trillion cubic feet, about 79 billion cubic feet below the five-year average of 2.62 trillion cubic feet and 324 billion cubic feet above last year’s total for the same period. Working gas in storage totaled 2.22 trillion cubic feet for the same period a year ago.

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

Exxon Mobil Corp. (NYSE: XOM), the country’s largest producer of natural gas, was down about 1.7%, at $86.49 in a 52-week range of $86.15 to $104.76. The low was posted Thursday.

Chesapeake Energy Corp. (NYSE: CHK) was down about 2.3%, at $18.69 in a 52-week range of $16.41 to $29.92.

EOG Resources Inc. (NYSE: EOG) was down about 1.2% to $87.04. The 52-week range is $80.75 to $118.89.

Also, the United States Natural Gas ETF (NYSEMKT: UNG) was down about 4.5%, at $13.90 in a 52-week range of $14.90 to $27.89. The low was posted Thursday.

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