Thursday, June 9, 2016

Natural Gas Jumps 4% On EIA Storage Report

Front futures $2.575 up 0.107.
The writer mentions hurricanes but with all the land-based shale stuff traders don't really think about them anymore.

From Economic Calendar:

EIA Weekly Natural Gas Inventories Data Elevates Prices to 7-Month Highs
The latest weekly natural gas storage report from the US Energy Information Administration (EIA) recorded an increase of 65bn cubic feet (Bcf), well below expectations of a build of around 80bn and compared with an increase of 82bn Bcf the previous week. The lower than expected increase should continue to support natural gas prices in the short term on hopes for an underlying decline in excess inventories.

Stocks were 660 Bcf higher than this time last year and 722 Bcf (31.1%) above the five-year average from 37.5% last week. Overall stocks are running at 2,972 Bcf and are still above the ceiling of the five-year range, although there has been some success in getting inventories under control. Stocks in the Pacific region are now below the levels seen last year, while Midwest stocks are still close to 50% above last year’s level.

Natural gas prices pushed higher during the first part of the week, boosted by generally warm conditions across the US, which increased expectations of rising power demand for air conditioning. Prices peaked at a seven-month high around $2.50 per mnBtu before edging slightly lower with some technical resistance in this area....MORE
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Here's the Energy Information Administration Administration's Weekly Natural Gas Storage Report.