Utilities injected 97 Bcf of natural gas into storage for the week ended Oct. 13, bolstered by a big boost in South Central supplies, the U.S. Energy Information Administration (EIA) reported on Thursday.
The result proved bearish versus expectations and recent norms – an 85 Bcf five-year average increase – and drove down Nymex natural gas futures.
The increase for the last week lifted inventories to 3,626 Bcf, keeping stocks well above the year-earlier level of 3,326 Bcf and the five-year average of 3,451 Bcf.
Ahead of the 10:30 ET government print, the November futures contract was up a penny at $3.066/MMBtu. However, the prompt month dropped to $2.998 shortly after the EIA data was released. About a half-hour later, it was down 7.5 cents to $2.981.
Prior to the report, estimates submitted to Reuters ranged from injections of 76 Bcf to 100 Bcf, with a median increase of 80 Bcf. Bloomberg’s poll landed at a median of 81 Bcf, with build estimates spanning 76 Bcf to 91 Bcf. NGI modeled a 79 Bcf injection.
Gelber & Associates analysts noted LNG feed gas volumes gained ground during the week – following the completion of a maintenance event at the Cove Point liquefied natural gas plant in Maryland – and early demand emerged to power furnaces in the North. Blasts of chilly weather permeated markets from the Upper Midwest to New England.
Relatively mild weather in Texas and neighboring states during the week, though, opened the door for plump injections in the South Central. The total build of 40 Bcf there led all regions and included a 23 Bcf increase in nonsalt facilities and an increase of 18 Bcf in salts. EIA noted totals do not always equal the sum of components because of independent rounding.
“Guess that nice Houston weather should have been a harbinger,” said one participant on the online energy platform Enelyst.
The Midwest and East regions followed with injections of 29 Bcf and 22 Bcf, respectively, according to EIA. Mountain region stocks rose by 4 Bcf, while Pacific inventories climbed by 2 Bcf.
Looking ahead to the next EIA inventory assessment, covering the week ending Oct. 20, early estimates submitted to Reuters ranged from injections of 59 Bcf to 86 Bcf, with an average increase of 73 Bcf. That compares with a five-year average of 66 Bcf.
