EIA Natural Gas Storage Report 04-27-23
Summary
Working gas in storage was 2,009 Bcf as of Friday, April 21, 2023, according to EIA estimates. This represents a net increase of 79 Bcf from the previous week.
Analyst expected today’s EIA weekly storage report to show an injection at about 72 Bcf.
Stocks were 525 Bcf higher than last year at this time and 365 Bcf above the five-year average of 1,644 Bcf. At 2,009 Bcf, total working gas is within the five-year historical range.
The 12-month natural gas strip price dropped slightly from last week, settling at $2.956/Dth (down 1.66%). The 24-month strip remained stable from last week, settling at $3.397.
Last week, relatively mild US temperatures caused a dip in heating demand leaving more supply available for injection to storage. However, the recent cooler weather in the Midwest and the Northeast has resulted in an upward trend in the gas futures market. Over the past week, the NYMEX June futures contract has edged toward the mid-$2/Dth mark.
We saw another increase in heating demand in the overnight forecast as temperatures are expected to remain below normal in the eastern half of the nation through the first 10 days of May, at least. The cool, stormy pattern will keep cooling demand at a minimum across the South. A very warm pattern in the West will lead to the above-normal cooling demand in the Southwest and interior California through early next week, then a return to more seasonable weather is expected.
Despite the bearish news expected from EIA’s upcoming storage report, the recent arrival of chillier weather in the Midwest and the Northeast has helped to reignite some momentum in the gas futures market. Over the past week, the NYMEX June futures contract has edged back toward the mid- $2s/MMBtu as many traders now anticipate tighter market conditions ahead.
Natural Gas Futures
Read more: EIA
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