For the fourth consecutive week, underground supplies of natural gas in storage in the South Central dwindled, bucking seasonal norms as every other region injected excess fuel into underground stocks.
Utilities in the region pulled 5 Bcf of gas from storage during the week ended Aug. 2, driven by a decrease in salt facilities, the U.S. Energy Information Administration (EIA) reported Thursday. It followed a 10 Bcf pull the prior week. Both draws played outsized roles in consecutive overall lean storage prints relative to expectations and historical averages.
The latest result “sparked some bullish momentum,” analysts at Gelber & Associates noted, with front month Nymex natural futures rallying several cents after the report crossed the wires. It ultimately settled at $2.127/MMBtu for the day, up 1.5 cents.
