Weekly Natural Gas Storage Report

September 11th, 2014

U.S. natural-gas inventories rose 92 billion cubic feet on the week
ended Sept. 5, the Energy Information Administration said Thursday. That
contrasted with expectations of an increase around 82 bcf and 85 bcf, according
to polls by Thomson Reuters and Bloomberg News. The increase was likely to
pressure natural-gas futures prices, because it not only topped market
expectations but also was 31 bcf more than the five-year average increase for
the week, said Tim Evans, an analyst with Citi Futures. “As it’s unclear
how much demand may have been lost due to the Labor Day holiday, it’s hard to
know how much the build represents a possible increase in underlying supply
that would carry over into future flows,” he added. Natural gas for
October delivery NGV14, -3.41%declined 12
cents, or 3.2%, to $3.83 per million British thermal units on the New York
Mercantile Exchange.

Working gas in storage was 2,801 Bcf as of Friday, September 5, 2014, according to EIA estimates. This represents a net increase of 92 Bcf from the previous week. Stocks were 443 Bcf less than last year at this time and 463 Bcf below the 5-year average of 3,264 Bcf. In the East Region, stocks were 215 Bcf below the 5-year average following net injections of 60 Bcf. Stocks in the Producing Region were 211 Bcf below the 5-year average of 1,052 Bcf after a net injection of 20 Bcf. Stocks in the West Region were 38 Bcf below the 5-year average after a net addition of 12 Bcf. At 2,801 Bcf, total working gas is below the 5-year historical range.

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