Natural gas storage inventories increased 65 Bcf for the week ending July 26, according to the EIA’s weekly report. This is slightly above the market expectation, which was an injection of 60 Bcf. Working gas storage inventories now sit at 2.634 Tcf, which is 334 Bcf above inventories from the same time last year and 123 Bcf below the five-year average. At the time of writing, the September 2019 contract was trading at $2.240/MMBtu, roughly $0.007 higher than yesterday’s close. The August 2019 contract closed earlier this week at $2.141/MMBtu. On expiration, the August contract was down early in the day but rallied and added a couple of pennies to close at $2.141/MMBtu. Since August expiration, the September contract was up as much as ~$0.16. However, this rally wasn’t fully weather related. During the early morning of August 1, an explosion on Texas Eastern occurred near Lexington, Kentucky. This explosion has taken off ~2.0 Bcf/d of pipeline capacity by taking the operating capacity at the Danville compressor to zero. During July, the Danville compressor station averaged ~1.64 Bcf/d of gas flowing south toward the Gulf. This incident will likely put upward pressure on Gulf prices, as seen prior to the… continue reading
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Source: CTRM Center