Natural gas storage inventories increased 115 Bcf for the week ending June 14, according to the EIA’s weekly report. This injection is well above the market expectation, which was an inventory increase of 104 Bcf. Working gas storage inventories now sit at 2.203 Tcf, which is 209 Bcf above inventories at the same time last year and 199 Bcf below the five-year average. At the time of writing, the July 2019 contract was trading at $2.200/MMBtu, dropping $0.076 from yesterday’s close. Prices were up around ~$0.02/MMBtu before the report release, but the bearish release caused prices to quickly fall. For the sixth consecutive week, the EIA has reported a triple-digit injection. This is the first time this has happened since 2014, when there were seven consecutive weeks of triple-digit injections. With the summer’s peak demand season just around the corner, don’t expect the triple-digit injections to hang around much longer. As power burn ramps up in July and August, some of the gas that is currently being injected into storage will need to be used to meet power burn demand. ICE’s Financial Weekly Index report is currently expecting an injection below 100 Bcf for next week. See the chart below… continue reading
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Source: CTRM Center