Inventories

After weeks of digesting larger-than-expected additions to gas storage inventories, traders on Thursday were shocked in the other direction as the Energy Information Administration (EIA) reported that a smaller-than-expected 73 Bcf was injected underground for the week ending April 16.

After weeks of digesting larger-than-expected additions to gas storage inventories, traders on Thursday were shocked in the other direction as the Energy Information Administration (EIA) reported that a smaller-than-expected 73 Bcf was injected underground for the week ending April 16.

Traders didn’t quite know how to handle the news Thursday morning that 86 Bcf was withdrawn from underground natural gas storage inventories for the week ending Jan. 22. Immediately following the 10:30 a.m. EST report, March natural gas futures — in its first regular session action as the front month — seesawed up and down before resuming its test of lower values.

Traders didn’t quite know how to handle the news Thursday morning that 86 Bcf was withdrawn from underground natural gas storage inventories for the week ending Jan. 22. Immediately following the 10:30 a.m. EST report, March natural gas futures — in its first regular session action as the front month — seesawed up and down before resuming its test of lower values.

Worldwide economic growth is slowly beginning, which is leading to rising demand for petroleum products, but high inventories of energy products will temper prices, especially those for natural gas, Moody’s Investors Service said last week.

Worldwide economic growth is slowly beginning, which is leading to rising demand for petroleum products, but high inventories of energy products will temper prices, especially those for natural gas, Moody’s Investors Service said Tuesday.

Southern Natural Gas lifted Monday the Type 6 OFO that had begun Saturday due to high storage inventories and limited injection capability. Southern also said it will evaluate nominations for due-pipe imbalance make-ups on each scheduling cycle, but will allow make-ups only on days when forecasted storage injections do not exceed CSS injection entitlements.

While Thursday’s news of a 52 Bcf addition to natural gas storage inventories for the week ending Aug. 14 was bullish compared to most expectations and historical comparisons for the week, prompt-month natural gas futures, in response to the report, dipped below $3 for the first time in seven years before closing out the day at $2.945, down 17.4 cents from Wednesday’s finish.

With consumption expected to decline by 2.3% this year and inventories remaining well above five-year averages, the monthly average Henry Hub natural gas spot price is expected to remain below $4/Mcf until late in the year, the Energy Information Administration (EIA) said in its Short-Term Energy Outlook for July.