Natural Gas Inventory Slows Price Increases

Energy

Published: August 7, 2014 10:55 am

Last Updated: April 28, 2020 2:20 am

The U.S. Energy Information Administration (EIA) reported Thursday morning that U.S. natural gas stocks increased by 82 billion cubic feet for the feet for the week ending August 1. That compared with an expected increase of around 89 billion cubic feet anticipated by analysts.

Natural gas futures prices were trading up about 1% in advance of the EIA’s report, at around $3.98 per million BTUs, and remained virtually unchanged at $3.97 immediately following the report. Natural gas futures have added around $0.15 per million BTUs (about 3.9%) in the past week.

For the same week a year ago, stockpiles rose by 96 billion cubic feet. Stockpiles are about 18.4% below their levels of a year ago and about 20.3% below the five-year average. The five-year average build for the week is 49 billion cubic feet.

Injections into storage have surpassed five-year averages for 16 straight weeks. The higher injection levels are easing worries that supplies will be tight for the coming winter. Demand for cooling has been moderate so far this summer and that has contributed to record-breaking build levels.

The EIA reported that U.S. working stocks of natural gas totaled 2.39 trillion cubic feet, about 608 billion cubic feet below the five-year average of 3 trillion cubic feet. Working gas in storage totaled 2.93 trillion cubic feet for the same period a year ago. Natural gas inventories continue to rise, but they remain well below the bottom of the five-year range.

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

Exxon Mobil Corp. (NYSE: XOM), the country’s largest producer of natural gas, was up about 0.2%, at $99.17 in a 52-week range of $84.79 to $104.72.

Chesapeake Energy Corp. (NYSE: CHK) was up about 0.25%, at $26.23 in a 52-week range of $22.63 to $29.92.

EOG Resources Inc. (NYSE: EOG) was also up about 0.2% to $116.91. The 52-week range is $75.69 to $118.89.

The United States Natural Gas ETF (NYSEMKT: UNG) was up fractionally, at $21.73 in a 52-week range of $16.59 to $27.89.

ALSO READ: Falling Gasoline Prices May Not Be Stopped by Inventory Declines

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