Energy

Natural Gas Supply Supports Price

Blue flames of a gas stove
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The U.S. Energy Information Administration (EIA) reported Thursday morning that U.S. natural gas stocks increased by 35 billion cubic feet for the week ending November 1, compared with an expected build of about 34 to 38 billion cubic feet anticipated by analysts. Natural gas futures prices were trading about 2.5% higher in advance of the EIA’s report, at around $3.59 per million BTUs, and remained around that level immediately following the EIA report.

The EIA reported that U.S. working stocks of natural gas totaled 3.81 trillion cubic feet, about 57 billion cubic feet higher than the five-year average of 3.76 trillion cubic feet. Working gas in storage totaled 3.93 trillion cubic feet for the same period a year ago. Natural gas inventories remain roughly in the middle of the five-year range. The five-year average increase for the period is 68 billion cubic feet.

A continuing spell of warmer-than-normal temperatures has been forecast for most of the East and Gulf Coasts, Midwest and parts of the Southwest, including Texas.

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

Exxon Mobil Corp. (NYSE: XOM), the country’s largest producer of natural gas, was down fractionally at $92.53, in a 52-week range of $84.70 to $95.49.

Chesapeake Energy Corp. (NYSE: CHK) was down 2.9%, at $25.48 in a 52-week range of $16.23 to $29.06. Chesapeake reported earnings on Wednesday.

EOG Resources Inc. (NYSE: EOG) was down 3.6% to $170.43. The 52-week range is $112.05 to $188.30. EOG reported earnings Thursday morning.

The U.S. Natural Gas Fund (NYSEMKT: UNG) was up 2%, at $17.69 in a 52-week range of $16.59 to $24.09. The Market Vectors Oil Services ETF (NYSEMKT: OIH) was down 1.2%, at $49.44 in 52-week range of $36.24 to $50.61. The first fund tracks spot prices; the second includes major drillers and services companies.

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