The U.S. Energy Information Administration (EIA) reported Thursday morning that U.S. natural gas stocks decreased by 70 billion cubic feet for the week ending February 5. Analysts were expecting a storage withdrawal of around 145 billion cubic feet. The five-year average for the week is a withdrawal of around 162 billion cubic feet, and last year’s withdrawal for the week totaled 160 billion cubic feet. The withdrawal from storage totaled 152 billion cubic feet in the previous week.
Natural gas futures for March delivery traded up about 0.6% in advance of the EIA’s report, at around $2.06 per million BTUs, and traded around $2.02 after the data release. Last Thursday natural gas closed at $1.97 per million BTUs, and over the past five trading days the high for natural gas futures was posted Monday at $2.17 per million BTUs. The 52-week range for natural gas is $1.91 to $3.41. One year ago the price for a million BTUs was around $3.28
Colder weather has settled over the heavily populated northeast portion of the United States and could stay there through the rest of this week and into next. Colder temperatures are also expected in the Midwest and Mid-Atlantic states beginning this weekend. Demand for natural gas is expected to be higher through the middle of next week.
Stockpiles are about 25% above their levels of a year ago and about 23.4% above the five-year average.
The EIA reported that U.S. working stocks of natural gas totaled about 2.864 trillion cubic feet, around 543 billion cubic feet above the five-year average of 2.321 trillion cubic feet and 573 billion cubic feet above last year’s total for the same period. Working gas in storage totaled 2.291 trillion cubic feet for the same period a year ago.
Here’s how share prices of the largest U.S. natural gas producers reacting to the latest report:
Exxon Mobil Corp. (NYSE: XOM), the country’s largest producer of natural gas, traded down about 1.3%, at $78.34 in a 52-week range of $66.55 to $93.45.
Chesapeake Energy Corp. (NYSE: CHK) traded down about 1.8% to $1.67. The stock’s 52-week range is $1.50 to $21.29.
EOG Resources Inc. (NYSE: EOG) traded down about 3% to $63.83. The 52-week range is $57.15 to $101.36.
In addition, the United States Natural Gas ETF (NYSEMKT: UNG) traded down about 1.8%, at $7.37 in a 52-week range of $6.91 to $15.28.
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