Thursday, September 22, 2016

"Natural Gas Prices Decline despite Lower EIA Weekly Inventory Build"

Front futures 3.0160 down 4.1 cents.
From Economic Calendar:
The latest weekly natural gas storage report from the US Energy Information Administration (EIA) recorded an increase of 52bn cubic feet (Bcf), lower than both the expected increase of 59 Bcf and the 62 Bcf gain the previous week.

Inventories rose 102 Bcf in the same week in 2015 and there was, therefore, further progress in reducing excess inventory with the stocks now 4.1% above year-ago levels and 8.2% above the five-year average.

Prices have remained buoyant over the past week at the highest level since early 2015. Demand conditions have remained favourable with the current spell of hot weather continuing. Latest forecasts suggest that very warm conditions will extend into next month, extending the normal seasonal demand for power to run air conditioning. Strong demand at this time of the year would be very important in curbing storage levels....MORE
The Platts survey averaged a 51-billion cubic feet build.
We'll be back with more tomorrow, this is starting to get interesting.
Happy first day of autumn.