Energy

Natural Gas Prices Rise Slightly on Modest Addition to Stocks

Blue flames of a gas stove
thinkstock
The U.S. Energy Information Administration (EIA) today reported the U.S. natural gas stocks increased by 89 billion cubic feet last week, at the lower end of a range of an expected build of between 87 and 100 billion cubic feet anticipated by analysts. Natural gas futures prices were down about 0.6% in advance of the EIA’s report, at around $4.18 per million BTUs, but rose to around $4.20 immediately following the EIA report.

The EIA reported that U.S. working stocks of natural gas totaled 2.05 trillion cubic feet, about 84 billion cubic feet lower than the five-year average of 2.14 trillion cubic feet. Working gas in storage totaled 2.73 trillion cubic feet for the same period a year ago. Natural gas inventories are roughly in the middle of the five-year range.

The weekly storage increase is a bit smaller than the 99 billion cubic feet build in the previous week. Seasonal factors likely influenced the smaller increase. Late spring typically sees lower demand since both heating and cooling demands are diminished. The slightly lower storage total could also indicate that producers are waiting (hoping?) for prices to rise.

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 0.5% to $91.72, in a 52-week range of $77.13 to $93.67.

Chesapeake Energy Corp. (NYSE: CHK) is down 0.1%, at $21.08 in a 52-week range of $14.25 to $22.97. Chesapeake’s share drop is largely due to a downgrade to Neutral from J.P. Morgan.

EOG Resources Inc. (NYSE: EOG) is down about 0.4%, at $130.39 in a 52-week range of $82.48 to $139.00.

The U.S. Natural Gas Fund (NYSEMKT: UNG) is up 0.8%, at $22.75 in a 52-week range of $15.18 to $24.09. The Market Vectors Oil Services ETF (NYSEMKT: OIH) is down 1.5%, at $43.89 in a 52-week range of $32.54 to $45.80. The first fund tracks spot prices; the second includes major drillers and services companies.

Take Charge of Your Retirement: Find the Right Financial Advisor For You in Minutes (Sponsor)

Retirement planning doesn’t have to feel overwhelming. The key is finding professional guidance—and we’ve made it easier than ever for you to connect with the right financial advisor for your unique needs.

Here’s how it works: 

1️ Answer a Few Simple Questions

Tell us a bit about your goals and preferences—it only takes a few minutes!

2️ Get Your Top Advisor Matches

This tool matches you with qualified advisors who specialize in helping people like you achieve financial success.

3️ Choose Your Best Fit

Review their profiles, schedule an introductory meeting, and select the advisor who feels right for you.

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

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.

AI Portfolio

Discover Our Top AI Stocks

Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.

You can follow him investing $500,000 of his own money on our top AI stocks for free.