The EIA announced a 68 Bcf injection for the week ended May 12. The injection came in above market expectations of an average 61 Bcf and even above most forecasts which range between 47 Bcf and 66 Bcf. The report is bearish and the prompt contract (June 2017) is down 1 cent following the release at $3.179 per MMBtu, at time of writing.
Working gas storage inventories increased to 2.369 Tcf, level 375 Bcf below last year but 256 above the 5-year average. See Drillinginfo EIA’s chart below. This graphic shows projections for end-of-season inventories as of Nov 1. Two scenarios are included for summer injections (April-Oct) that result in inventories between 3.6 Tcf and 4.2 Tcf.
Natural Gas Fundamentals Month-to-Date Review
Drillinginfo has been expecting a run in gas prices, similar to last week’s action, in order provide price levels necessary to incentivize production growth. However, bearish fundamentals from the demand sector in the short run continues to put a cap in gains.
Latest posts by Maria Sanchez (see all)
- Prices Fall On Continuously Rising Stockpiles and Fears of Economic and Demand Growth - June 12, 2019
- Large Crude Inventory Build Halts the Price Rally - April 3, 2019
- EIA Reports Storage Injection of 66 Bcf, Includes Revision - June 28, 2018