The U.S. Energy Information Administration (EIA) reported Thursday morning that U.S. natural gas stocks increased by 69 billion cubic feet for the week ending August 21. Analysts were expecting a storage injection (increase) of 61 billion cubic feet. The five-year average for the week is an increase of around 61 billion cubic feet, and last year’s addition for the week totaled 88 billion cubic feet.

Natural gas futures for September delivery traded down about 0.6% in advance of the EIA’s report, at around $2.67 per million BTUs, and slipped further to $2.65 following release of the report. Last Thursday, natural gas closed at $2.79 per million BTUs, and over the past five trading days, natural gas futures peaked last Friday at $2.80. The 52-week low for natural gas futures is $2.64. One year ago, the price for a million BTUs was around $3.95.

Continuing cool weather in the Midwest and in the east is expected to moderate demand for cooling next week. Some portions of the southeast will also get a break from high temperatures. Temperatures are forecast to rise east of the Rockies beginning next week, but weak weather systems are expected to dampen demand for natural gas. In the West, higher temperatures this week are expected to cool down next week as some Pacific storms move onshore.

Although prices remain very low, production continues to rise modestly. We took a look at that phenomenon earlier this week.

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Stockpiles are about 18% above their levels of a year ago and about 2.9% above the five-year average.

The EIA reported that U.S. working stocks of natural gas totaled about 3.099 trillion cubic feet, around 88 billion cubic feet above the five-year average of 3.011 trillion cubic feet and 480 billion cubic feet above last year’s total for the same period. Working gas in storage totaled 2.619 trillion cubic feet for the same period a year ago.

Here is how share prices of the three largest U.S. natural gas producers reacted to this latest report. All three companies have posted new 52-week lows since last week’s report.

Exxon Mobil Corp. (NYSE: XOM), the country’s largest producer of natural gas, traded up about 2.1%, at $74.00 in a 52-week range of $66.55 to $99.74.

Chesapeake Energy Corp. (NYSE: CHK) traded up about 8.4% to $6.89. The stock’s 52-week range is $6.015 to $27.24.

EOG Resources Inc. (NYSE: EOG) traded up about 5.5% to $74.92. The 52-week range is $68.15 to $19.98.

Furthermore, he United States Natural Gas ETF (NYSEMKT: UNG) traded down about 1.2%, at $12.59 in a 52-week range of $12.28 to $23.73.

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