Natural Gas Inventories Continue Rising

The EIA reported that U.S. working stocks of natural gas totaled 3.65 trillion cubic feet, about 272 billion cubic feet higher than the five-year average of 3.37 trillion cubic feet. Working gas in storage totaled 3.38 trillion cubic feet for the same period a year ago.

U.S. natural gas inventories are about 8% higher than they were a year ago and about 8.3% higher than the 5-year average.

Natural gas futures prices are about 80% 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 is 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 up about 0.8% at $92.39 in a 52-week range of $72.63 to $92.57.

Chesapeake Energy Corp. (NYSE: CHK) is up about 1.7% at $19.33 in a 52-week range of $13.32 to $29.87.

EOG Resources Inc. (NYSE: EOG) is up about 0.9% at $112.05 in a 52-week range of $74.73 to $119.97.

The U.S. Natural Gas Fund (NYSEMKT: UNG) is flat at $22.00 in a 52-week range of $14.25 to $36.60. The Market Vectors Oil Services ETF (NYSEMKT: OIH) is up about 1.1% at $39.61 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