Natural gas futures were slightly higher through midday trading Thursday, supported in part by an on-target government inventory report that showed a modestly shrinking surplus.
Here’s the latest:
- May Nymex futures were up 3.9 cents to $1.751/MMBtu as of 2:23 p.m. ET
The Energy Information Administration (EIA) reported a 50 Bcf injection into natural gas inventories for the week ending April 12. The build was in line with the 44-57 Bcf range of estimates ahead of the report. However, it was was less than the five-year average increase of 61 Bcf and the year-ago injection of 61 Bcf. Total working gas in storage remained 622 Bcf above the five-year average of 1,711 Bcf, but this is down from 633 Bcf the prior week.
- Mountain stocks at a staggering 86% surplus to five-year average, according to EIA. South Central inventories nearly 33% above five-year average.
- NatGasWeather said surpluses would be near 600 Bcf through early May. “It will then be up to hotter-than-normal May temperatures if surpluses are to be meaningfully reduced.”
- Production remains much lighter year over year and still near 100 Bcf/day, according to the firm. Meanwhile, a colder-than-normal U.S. pattern is still set to impact much of the country the next eight to nine days for stronger-than-normal demand.
As May progresses, NatGasWeather expects daily cooling degree days would slowly gain in dominance to become the primary driver of U.S. demand since heating degree days would be dropping to very light levels.
- Henry Hub day-ahead prices averaging $1.570, up 7.0 cents, per MidDay Price Alert data
Gains spread across the Lower 48, particularly in California. The SoCal Border Avg. was up 21.0 cents to $1.450 Wednesday, according to MidDay Price Alert.
