By Paulo Trevisani
Oct. 25, 2023
Synopsis
U.S. government natural gas data, to be released on Thursday, is expected to reveal a 79.2 billion cubic feet increase in storage, keeping national stockpiles high and prices stable. This would be a 9% increase from last year and a 5.3% surplus compared to the five-year average. High gas production and limited demand due to a mild winter and economic slowdown have contributed to this surplus. Natural gas futures are at $3.00/mmBtu.
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U.S. government natural gas data due Thursday are expected to show inventories increased last week, keeping national stockpiles relatively high and prices in check.
The Energy Information Administration is expected to report that gas in storage rose by 79.2 billion cubic feet during the week ended Oct. 20, according to the average forecast of 11 analysts, brokers and traders surveyed by The Wall Street Journal.
Estimates range from increases of 76 bcf to 88 bcf. The average forecast compares with a rise of 61 bcf for the same week last year, and a five-year average increase of 66 bcf.
The EIA is scheduled to release its natural gas storage data for the week at 10:30 a.m. ET Thursday.
An 79.2-bcf increase would mean gas stockpiles totaled around 3.71 trillion cubic feet, which would be up 9% from last year's total at this time, and a 5.3% surplus compared with the five-year average.
U.S. natural gas production this year has been too strong for a national demand limited by a mild winter and slowing economic activity. The inventory surplus climbed to 24% above normal in the spring, before a hot summer boosted consumption, narrowing the surplus.
Natural gas futures were up 1% to $3.00/mmBtu.
Source: https://www.marketwatch.com/
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