The U.S. Energy Information Administration shared today that U.S. natural gas stocks have increased by 111 billion cubic feet for the week ending on May 1 and that storage will see a small increase of about 125 billion cubic feet.
As reported by 24/7 Wall St., “Natural gas futures for June delivery traded down about 1.1% in advance of the EIA’s report, at around $2.90 per million BTUs, and jumped to around $3.02 (up about 4.1% for the day) following release of the report. Last Thursday, natural gas closed at $2.73 per million BTUs and natural gas futures have increased by about 6% over the past five trading days. The 52-week low for natural gas futures is $2.48. One year ago the price for a million BTUs was around $4.20.”
Thanks to the cooler spring weather northern point of nation is experiencing, the demand for natural gas has witnessed a little boost. The line of cool weather is expected to travel down to Texas and other states in the southern region of the U.S. sometime this week and next week. This will also help cool off warmer parts of the nation, but will also keep the demand for natural gas low.
The small increase in storage is believed to be due to lower natural gas production in the nation’s prominent shale plays. Earlier this week, the EIA released its drilling productivity report, which said, “It expects natural gas production to drop by 112 million cubic feet per day in June.”
When compared to last year, stockpiles are 65.7 percent above their levels and sitting about 2 percent under the five-year average.
According to the 24/7 Wall St., “The EIA reported that U.S. working stocks of natural gas totaled about 1.897 trillion cubic feet, around 38 billion cubic feet below the five-year average of 1.935 trillion cubic feet and 752 billion cubic feet above last year’s total for the same period. Working gas in storage totaled 1.145 trillion cubic feet for the same period a year ago.”