Natural Gas Inventories Jump Again, Price Dives
The US Energy Information Administration today reported the US natural gas stocks rose by a total of 25 billion cubic feet, well above the 8 billion cubic feet increase that analysts had expected. Natural gas prices responded by falling about…
The EIA reported that US working stocks of natural gas totaled 2.51 trillion cubic feet, about 919 billion cubic feet higher than the five-year average of 1.59 trillion cubic feet. Working gas in storage totaled 1.64 trillion cubic feet for the same period a year ago.
A warm winter, continued production increases, and the current, usually low-demand period are likely to keep natural gas prices depressed at least through April and perhaps even into May. Without a warmer-than-usual summer to boost prices for natural gas, more production cutbacks are likely and natural gas producers could face even more difficult times.
US natural gas stocks are about 53% higher than they were a year ago and more than 57% higher than the 5-year average.
Paul Ausick
Contact [email protected] for any questions or corrections.
Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.
He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.