Natural gas storage inventories increased by 78 Bcf for the week ended June 9, per EIA. The report is bullish with the build coming below market expectations, which were calling for an 86-Bcf increase in stocks. The full range of forecasts was between 77 Bcf and 94 Bcf.
The Henry Hub prompt contract (July 2017) have traded most of the week below the $3.00 mark after losing over 20 cents during the first 2 weeks of June. The July 2017 contract is up $0.07 following the EIA report and currently trading at $3.00 per MMBtu at time of writing.
Working gas storage inventories increased to 2.709 Tcf, level 322 Bcf below last year but 228 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 3.63 Tcf and 4.16 Tcf.
Power Burn Leads Demand Gains This Week
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- EIA Reports Storage Injection of 66 Bcf, Includes Revision - June 28, 2018