EIA Natural Gas Storage Report 06-22-23
Summary
Working gas in storage was 2,729 Bcf as of Friday, June 16, 2023, according to EIA estimates. This represents a net increase of 95 Bcf from the previous week.
Analyst expected today’s EIA weekly storage report to show an injection at about 92 Bcf.
Stocks were 571 Bcf higher than last year at this time and 362 Bcf above the five-year average of 2,367 Bcf. At 2,729 Bcf, total working gas is within the five-year historical range.
The 12- and 24-month natural gas strip prices rose from last week, settling at $3.171/Dth (up 4.90%) and $3.48/Dth (up 2.84%) respectively.
Hot weather across the US is lifting the NYMEX gas futures market from springtime lows, pushing prompt month prices to the mid-$2s amid a more bullish outlook for gas-fired power demand. In little over a week, the July futures contract has gained nearly 35 cents, or almost 16%, rising to a mid-session high around $2.60/Dth yesterday.
A storm will continue to produce plenty of clouds and showers along the East Coast today with highs only in the 60s and 70s. Gradually temperatures will warm closer to normal next week but remain suppressed due to frequent rain chances. The Midwest will have normal to above-normal temperatures through next week. Texas will see an uptick in thunderstorm activity over the next couple of days, then dry out and heat up next week with highs expected in the upper 90s to lower 100s. In the West, temperatures and cooling demand will be increasing next week, though coastal areas will remain mild with a persistent marine layer. Highs will range from the 70s near the coast to 80s and 90s inland, with highs topping 110 F in the Desert Southwest.
According to a power burn forecast from S&P Global, demand from U.S. generators should climb to an average 40.1 Bcf/d over the next week before surging to an estimated 43.8 Bcf/d in the week following as single-day burns climb to an estimated 45-46 Bcf/d range by early July.
Natural Gas Futures
Read more: EIA
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