Natural gas storage inventories increased 89 Bcf for the week ending October 25, according to the EIA’s weekly report. This is slightly lower than the market expectation, which was an injection of 91 Bcf. Working gas storage inventories now sit at 3.695 Tcf, which is 559 Bcf above inventories from the same time last year and 52 Bcf above the five-year average. Prior to the storage report release, the December 2019 contract was trading at $2.675/MMBtu, roughly $0.016 lower than yesterday’s close. At the time of writing, after the report, the December 2019 contract was trading at $2.655/MMBtu. Earlier this week, the November 2019 contract expired at $2.597/MMBtu, rallying ~$0.30/MMBtu from October 25 to the close on October 29. Injections over the summer have been strong compared to last year as well as to the five-year average. Injections during the 2019 summer season have been consistently above the five-year average injection, with the exception of a brief period in July. During summer 2019, injections have averaged 18 Bcf/week stronger than the five-year average and 25 Bcf/week stronger than injections during summer 2018. Lower-48 demand has strengthened over the past five years, with more natural gas power plants and LNG exports.… continue reading
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Source: CTRM Center