Natural Gas Storage: +65 Bcf
The EIA reported a larger-than-expected build in natural gas storage inventories
The U.S. Energy Information Administration reported a weekly build of 65 Billion Cubic Feet (Bcf) in Lower 48 natural gas storage inventories for the week ending July 5, 2024 (Link). Total inventories now stand at 3,199 Bcf, 283 Bcf (9.7%) above year-ago levels and 504 Bcf (18.7%) above the 2019-2023 average for the same week.
Today’s report showed a larger-than-expected increase in natural gas stocks, driven by a combination of a lower gas demand for power generation amid cooler temperatures along with lower overall demand due to the Independence Day holiday. Moreover, this was the first report since the week ending May 3, 2024 that showed a weekly storage gain that increased the surpluses to the historical benchmarks.
Looking ahead, the weekly builds for the rest of July are expected to come in much lower than this report as the heat is expected to return and with it higher natural gas demand for power generation.
Immediately following the release of the report, the August NYMEX natural gas futures contract traded lower to the daily low of $2.261 per MMBtu. Pricing quickly recovered but continued to drift lower throughout the rest of the trading day, settling at $2.268, down $0.061 per MMBtu on the day.
Looking at the regional breakdown, inventories in the East and Midwest remain above the 5-year range while Mountain Region gas storage continues to fill well-ahead of schedule with stocks currently at levels normally seen in October.
Detailed Data with Updated Charts in the Natural Gas Storage Report PDF Below:
