Natural Gas Inventories Rise as Expected, Price Falling
thinkstockThe U.S. Energy Information Administration (EIA) today reported the U.S. natural gas stocks rose by a total of 67 billion cubic feet, matching the build that analysts were expecting. Natural gas futures prices were slightly lower in advance of the…
The U.S. Energy Information Administration (EIA) today reported the U.S. natural gas stocks rose by a total of 67 billion cubic feet, matching the build that analysts were expecting. Natural gas futures prices were slightly lower in advance of the EIA’s report at around $3.43 per thousand cubic feet, and fell by an additional 2% following the EIA report.
The EIA reported that U.S. working stocks of natural gas totaled 3.84 trillion cubic feet, about 251 billion cubic feet higher than the five-year average of 3.59 trillion cubic feet. Working gas in storage totaled 3.69 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 81% 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 up about 0.6% at $90.40 in a 52-week range of $73.90 to $93.67.
Chesapeake Energy Corp. (NYSE: CHK) is up about 1.2% at $20.31 in a 52-week range of $13.32 to $29.87.
EOG Resources Inc. (NYSE: EOG) is up about 0.7% at $111.51 in a 52-week range of $82.48 to $119.97.
The U.S. Natural Gas Fund (NYSEMKT: UNG) is down about 1.3% at $21.91 in a 52-week range of $14.25 to $36.16. The Market Vectors Oil Services ETF (NYSEMKT: OIH) is up about 0.7% at $39.12 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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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.