Natural Gas Inventory Declines Again, Price Slips

Natural gas prices rose to a five-year high near $6.15 per million BTUs Wednesday, up almost $0.50 since last week’s inventory report. Forecasts call for continued cold weather and snowy conditions in the Midwest and Northeast. Natural gas storage levels could even fall to below a trillion cubic feet by the end of the winter heating season in March, according to a report at MarketWatch. Thursday’s drop was in line with expectations, dampening what might have been a sharper price increase.

The EIA reported that U.S. working stocks of natural gas totaled 1.44 trillion cubic feet, about 741 billion cubic feet below the five-year average of 2.18 trillion cubic feet. Working gas in storage totaled 2.42 trillion cubic feet for the same period a year ago. Natural gas inventories are dropping further below the bottom of the five-year range.

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 up about 0.8%, at $94.74 in a 52-week range of $84.79 to $101.74.

Chesapeake Energy Corp. (NYSE: CHK) was up 0.2%, at $26.44 in a 52-week range of $18.21 to $29.06.

EOG Resources Inc. (NYSE: EOG) was up 0.9%, at $180.54. The 52-week range is $112.05 to $188.30.

The U.S. Natural Gas Fund (NYSEMKT: UNG) was down about 0.6%, at $26.76 in a 52-week range of $16.59 to $27.58. The Market Vectors Oil Services ETF (NYSEMKT: OIH) was up 0.4%, at $47.77 in 52-week range of $39.42 to $51.11. The first fund tracks spot prices; the second includes major drillers and services companies.