Natural Gas Inventory Takes Seasonal Drop

Energy

Published: December 20, 2012 10:38 am

Last Updated: April 28, 2020 2:20 am

The U.S. Energy Information Administration (EIA) today reported the U.S. natural gas stocks declined by 82 billion cubic feet last week, more than the expected decrease of 75 billion cubic feet compiled by Bloomberg. Natural gas futures prices were about 1.6% higher in advance of the EIA’s report at around $3.37 per thousand cubic feet, and rose by a penny immediately following the EIA report.

The EIA reported that U.S. working stocks of natural gas totaled 3.72 trillion cubic feet, about 345 billion cubic feet higher than the five-year average of 3.38 trillion cubic feet. Working gas in storage totaled 3.66 trillion cubic feet for the same period a year ago.

Storage levels remain above the top of the five-year range and the draw on stocks is typical for the winter heating season. Gas prices are remain down more than 15% from recent highs around $3.93 per thousand cubic feet. Above average temperatures in heavily populated areas of the U.S. are also expected to continue weighing on prices.

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 down about 0.5% at $88.03 in a 52-week range of $77.13 to $93.67.

Chesapeake Energy Corp. (NYSE: CHK) is up about 1% at $17.38 in a 52-week range of $13.32 to $26.09.

EOG Resources Inc. (NYSE: EOG) is down about 0.1% at $122.57 in a 52-week range of $82.48 to $124.49.

The US Natural Gas Fund (NYSEMKT: UNG) is up 2.7% at $19.53 in a 52-week range of $14.25 to $28.08. The Market Vectors Oil Services ETF (NYSEMKT: OIH) is down about 0.1% at $39.35 in a 52-week range of $32.54 to $45.14. The first fund tracks spot prices; the second includes major drillers and services companies.

Paul Ausick

Take Charge of Your Retirement In Just A Few Minutes (Sponsor)

Retirement planning doesn’t have to feel overwhelming. The key is finding expert guidance—and SmartAsset’s simple quiz makes it easier than ever for you to connect with a vetted financial advisor.

Here’s how it works:

Answer a Few Simple Questions. Tell us a bit about your goals and preferences—it only takes a few minutes!
Get Matched with Vetted Advisors Our smart tool matches you with up to three pre-screened, vetted advisors who serve your area and are held to a fiduciary standard to act in your best interests. Click here to begin
Choose Your Fit Review their profiles, schedule an introductory call (or meet in person), and select the advisor who feel is right for you.

Why wait? Start building the retirement you’ve always dreamed of. Click here to get started today!