Gas Inventories Exceed 3Tcf, Injection Misses Low

Natural gas storage inventories increased 78 Bcf for the week ending September 6, according to the EIA’s weekly report. This is lower than the market expectation, which was an injection of 82 Bcf. Working gas storage inventories now sit at 3.019 Tcf, which is 393 Bcf above inventories from the same time last year and 77 Bcf below the five-year average. Prior to the storage report release, the October 2019 contract was trading at $2.525/MMBtu, roughly $0.027 lower than yesterday’s close. Prices rose post report to $2.559/MMBtu, but could not hold. At the time of writing, the October 2019 contract was trading at $2.549/MMBtu. At the start of the injection season, the market was at a storage deficit compared to both last year and the five-year average. At the start of injection season for summer 2019, storage inventories sat at 1,107 Bcf. This inventory level was 276 Bcf below 2018 and 544 Bcf below the five-year average. However, increased production year over year has been able to help get the market out of the deficit. Last year, lower-48 dry gas production averaged 82.98 Bcf/d from April to August, while this year production has averaged 89.59 Bcf/d for the same time… continue reading

Continue reading Gas Inventories Exceed 3Tcf, Injection Misses Low. This article appeared first on CTRM Center.

Source: CTRM Center

Related Posts

Leave a reply