Natural Gas Inventories Support Bullish Sentiments

Natural gas futures prices were trading about flat in advance of the EIA’s report, at around $4.50 per million BTUs, and rose to $4.69 immediately following the report.

The lower-than-expected build to inventories, combined with a forecast for more cool weather for the next few days, has made traders bullish on the natural gas market.

The EIA reported that U.S. working stocks of natural gas totaled 850 billion cubic feet, about 1.01 trillion cubic feet below the five-year average of 1.86 trillion cubic feet. Working gas in storage totaled 1.7 trillion cubic feet for the same period a year ago. Natural gas inventories have leveled off but remain below the bottom of the five-year range.

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

Exxon Mobil Corp. (NYSE: XOM), the country’s largest producer of natural gas, was up about 0.8% to $100.69, in a 52-week range of $84.79 to $101.74.

Chesapeake Energy Corp. (NYSE: CHK) was up about 2.7%, at $28.25 in a 52-week range of $18.21 to $29.06.

EOG Resources Inc. (NYSE: EOG) was up 1.5% to $102.53. The 52-week range is $56.03 to $103.30.

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