The U.S. Energy Information Administration (EIA) reported Thursday morning that U.S. natural gas stocks decreased by 42 billion cubic feet for the week ending December 2. Analysts were expecting a storage decline of about 42 billion cubic feet. The five-year average for the week is a withdrawal of around 62 billion cubic feet, and last year’s storage decline for the week totaled 76 billion cubic feet. Natural gas inventories fell by 50 billion cubic feet in the week ending November 25.
Natural gas futures for January delivery traded up around 1% in advance of the EIA’s report, at around $3.64 per million BTUs, and traded near $3.68 after the data release. Natural gas closed at $3.60 per million BTUs on Wednesday, after posting a five-day high of $3.73 on Tuesday. The 52-week range for natural gas is $2.50 to $3.75. One year ago the price for a million BTUs was around $2.82.
According to S&P Global Platts, the United States exported an average of 7.4 billion cubic feet per day of natural gas in November, some 400 million cubic feet per day more than it imported. On an annual basis, the last time U.S. natural gas exports exceeded imports was nearly 60 years ago.
Demand for natural gas in the week ahead is expected to rise as a mass of cold air currently settled over the Rockies and Plains moves eastward to more densely populated parts of the country. Another Arctic blast is expected in the middle of next week, maintaining demand at high level.
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Stockpiles remain about 1.3% above their levels of a year ago and 6.9% above the five-year average.
The EIA reported that U.S. working stocks of natural gas totaled about 3.995 trillion cubic feet, around 254 billion cubic feet above the five-year average of 3.699 trillion cubic feet and 51 billion cubic feet above last year’s total for the same period. Working gas in storage totaled 3.902 trillion cubic feet for the same period a year ago.
Here’s how share prices 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, traded down about 0.3%, at $87.85 in a 52-week range of $71.55 to $95.55.
Chesapeake Energy Corp. (NYSE: CHK) traded down about 0.2% to $7.57. The stock’s 52-week range is $1.50 to $8.15.
EOG Resources Inc. (NYSE: EOG) traded up about 0.1% to $103.63. The 52-week range is $57.15 to $107.47.
Furthermore, the United States Natural Gas ETF (NYSEMKT: UNG) traded up about 1.1%, at $9.11 in a 52-week range of $5.78 to $9.64.
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