Energy

Natural Gas Supply Slides as Cold Weather Gives Way

Blue flames of a gas stove
Source: thinkstock
The U.S. Energy Information Administration (EIA) today reported the U.S. natural gas stocks declined by 94 billion cubic feet last week, slightly more than the decline of 91 billion cubic feet anticipated by analysts. Natural gas futures prices were up nearly 1% in advance of the EIA’s report, at around $3.90 per million BTUs, but fell to around $3.88 immediately following the EIA report.

The EIA reported that U.S. working stocks of natural gas totaled 1.69 trillion cubic feet, about 37 billion cubic feet lower than the five-year average of 1.72 trillion cubic feet. Working gas in storage totaled 2.47 trillion cubic feet for the same period a year ago.

Colder weather has driven withdrawals from storage for the past several weeks, but normal or above-normal temperatures are expected over the whole United States for the next several days, and that is expected to blunt demand for natural gas. Withdrawals of natural gas are expected to leave storage levels about 30% below the 2012 record level of 2.48 trillion cubic feet at the end of last year’s heating season.

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 0.1%, at $89.80 in a 52-week range of $77.13 to $93.67.

Chesapeake Energy Corp. (NYSE: CHK) is up about 0.3%, at $19.24 in a 52-week range of $13.32 to $22.97.

EOG Resources Inc. (NYSE: EOG) is down 1.5%, at $124.24 in a 52-week range of $82.48 to $138.20.

The U.S. Natural Gas Fund (NYSEMKT: UNG) is down 0.7%, at $21.11 in a 52-week range of $14.25 to $23.38. The Market Vectors Oil Services ETF (NYSEMKT: OIH) is down about 0.2%, at $41.29 in a 52-week range of $32.54 to $45.12. The first fund tracks spot prices; the second includes major drillers and services companies.

Sponsored: Attention Savvy Investors: Speak to 3 Financial Experts – FREE

Ever wanted an extra set of eyes on an investment you’re considering? Now you can speak with up to 3 financial experts in your area for FREE. By simply
clicking here
you can begin to match with financial professionals who can help guide you through the financial decisions you’re making. And the best part? The first conversation with them is free.


Click here
to match with up to 3 financial pros who would be excited to help you make financial decisions.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.