Natural gas storage inventories increased by 28 Bcf for the week ended Aug. 4, per EIA. The build was below most market expectations which were in the mid-30s. Natural gas prices gained $0.04 cents yesterday and extended the gains following the EIA report. Prompt month contract (Sept 2017) is currently trading at $2.988, up $0.10 cents at time of writing.
Five-Year Average Gap in Inventories Eroding
Working gas storage inventories increased to 3.038 Tcf, level 275 Bcf above last year and only 67 Bcf 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 3.68 Tcf and 3.95 Tcf.
This Week In Fundamentals
The summary below is based on PointLogic’s flow data and DI analysis for the week ending 8/10.
• Supply: dry gas production averages 73 Bcf/d this week, up 100 MMcf/d from last week. Total supply is down 300 MMcf/d due to declines in imports from Canada.
• Demand: colder-than-normal temperatures continue to keep a lid in demand. Total demand is down 0.6 Bcf/d this week.
• Storage: an injection in the 40s Bcf is expected to be released by EIA next week due to persistent weak demand.
Maria Sanchez
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
