Energy

Natural Gas Inventory Rise Inline, Price Rising Too

Source: thinkstock
The U.S. Energy Information Administration (EIA) today reported the U.S. natural gas stocks rose by a total of 65 billion cubic feet, slightly below the 67 billion cubic feet that analysts were expecting. Natural gas futures prices were barely higher in advance of the EIA’s report, at around $3.68 per thousand cubic feet, and have added another penny following the EIA report.

The EIA reported that U.S. working stocks of natural gas totaled 3.91 trillion cubic feet, about 259 billion cubic feet higher than the five-year average of 3.65 trillion cubic feet. Working gas in storage totaled 3.77 trillion cubic feet for the same period a year ago.

U.S. natural gas inventories are about 4% higher than they were a year ago and about 7% higher than the five-year average.

Natural gas futures prices are about 94% higher than they were at their low point of $1.90 per thousand cubic feet in April of this year. Working gas in storage remains above the high end of the five-year average.

Here’s how stocks of the largest U.S. natural gas producers are reacting to today’s report:

Exxon Mobil Corp. (NYSE: XOM), the country’s largest producer of natural gas, is down about 0.2%, at $90.95 in a 52-week range of $73.90 to $93.67. Exxon also reported third-quarter earnings today.

Chesapeake Energy Corp. (NYSE: CHK) is down less than 1%, at $20.25 in a 52-week range of $13.32 to $29.85.

EOG Resources Inc. (NYSE: EOG) is up about 1.4%, at $118.10 in a 52-week range of $82.48 to $119.97.

The U.S. Natural Gas Fund (NYSEMKT: UNG) is down about 0.2% at $21.70, in a 52-week range of $14.25 to $35.44. The Market Vectors Oil Services ETF (NYSEMKT: OIH) is up about 1.1% at $38.95, in a 52-week range of $32.54 to $45.14. The first fund tracks spot prices; the second includes major drillers and services companies.

Paul Ausick

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