Inventory

August futures declined Wednesday as traders saw little impact from a Gulf of Mexico storm and expected Thursday’s government inventory report to show increases above historical averages. At the close August had fallen 3.9 cents to $4.315 and September slipped 3.9 cents as well to $4.334. August crude oil vaulted higher adding $1.88 to $94.77/bbl.

Southern California Gas ended a high-linepack OFO Sunday. Northern California neighbor Pacific Gas and Electric had a systemwide high-inventory OFO in effect Sunday but canceled it Monday.

Southern California Gas did not extend a high-linepack OFO beyond Saturday.

Pacific Gas and Electric issued a systemwide Stage 2 high-inventory OFO for Saturday on its California Gas Transmission system, setting penalties of $1/Dth for exceeding a 5% tolerance on positive daily imbalances.

June natural gas futures managed to inch higher following the release of mildly supportive inventory figures Thursday. The Energy Information Administration (EIA) reported that 70 Bcf was injected for the week ending May 6, slightly less than consensus estimates closer to 73 Bcf. At the close June had risen 1.3 cents to $4.194 and July gained 1.5 cents to $4.256. June crude oil managed a modest gain of 76 cents to $98.97/bbl. after plunging $5.67 to $98.21/bbl in Wednesday’s chaotic oil trading.

Pacific Gas and Electric kept a systemwide Stage 2 high-inventory OFO in place through at least Friday but loosened the tolerance for positive negative imbalances from 5% to 13%.

Pacific Gas and Electric declared a systemwide Stage 2 high-inventory OFO on its California Gas Transmission system for Thursday, setting $1/Dth penalties for noncompliance with a 5% tolerance on positive daily imbalances.

Pacific Gas and Electric issued a systemwide Stage 2 low-inventory OFO on its California Gas Transmission system, setting penalties of $1/Dth for exceeding a 5% tolerance on negative daily imbalances.

May natural gas futures continued on their downward spiral Thursday following the release of government inventory data that showed a withdrawal far less than what the industry was expecting.