Natural Gas Price Up; Inventory Levels Remain Above Last Year's Total

Energy

Published: January 15, 2015 11:00 am

Last Updated: April 28, 2020 2:25 am

The U.S. Energy Information Administration (EIA) reported Thursday morning that U.S. natural gas stocks decreased by 236 billion cubic feet for the week ending January 9, compared with an expected decrease of around 229 billion cubic feet anticipated by analysts. The five-year average draw is 194 billion cubic feet, and during the same period last year the draw was 269 billion cubic feet.

Natural gas futures for February delivery traded up about 1.6% in advance of the EIA’s report, at around $3.30 per million BTUs, and rose about two cents immediately following the report. Natural gas futures have risen from a low of around $2.95 per million BTUs since last week. Futures dropped to a 52-week low of $2.78 on Monday.

The weather forecast for the rest of this week and into next week calls for milder temperatures (for January) across most of the country, with the exception of some colder air at times rushing through the Great Lakes area. Temperatures in the Midwest and the Northeast are expected to drop significantly by the end of next week, before warming up again at the end of the month.

Stockpiles are about 11% above their levels of a year ago and about 3.8% below the five-year average. The relatively milder weather so far in the heating season has curtailed stockpile drawdowns.

The EIA reported that U.S. working stocks of natural gas totaled 2.85 trillion cubic feet, about 113 billion cubic feet below the five-year average of 2.97 trillion cubic feet and 282 billion cubic feet above last year’s total for the same period. Working gas in storage totaled 2.57 trillion cubic feet for the same period a year ago.

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

Exxon Mobil Corp. (NYSE: XOM), the country’s largest producer of natural gas, was down about 0.4%, at $89.45 in a 52-week range of $86.19 to $104.76.

Chesapeake Energy Corp. (NYSE: CHK) was down about 1%, at $18.56 in a 52-week range of $16.41 to $29.92.

EOG Resources Inc. (NYSE: EOG) is down about 0.4% to $87.53. The 52-week range is $80.63 to $118.89.

The United States Natural Gas ETF (NYSEMKT: UNG) was down about 0.6%, at $16.55 in a 52-week range of $14.09 to $27.89.

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