Natural Gas At Three Week High, US Storage Down 23% On Year

Natural Gas futures rose for a second session today as a recovery from two and half month continued. Buying remained in place even as the US Energy Information Administration (EIA) reported Thursday that US natural gas stockpiles increased by 35 billion cubic feet for the week ending July 27. The five-year average for the week is an injection of 43 billion cubic feet and last year’s storage increase for the week totaled 18 billion cubic feet. Natural gas inventories rose by 24 billion cubic feet in the week ending July 20.

Total US stockpiles rose week over week to 23% below last year’s level and are now 19.7% below the five-year average. The EIA reported that US working stocks of natural gas totaled about 2.308 trillion cubic feet at the end of last week, around 565 billion cubic feet below the five-year average of 2.873 trillion cubic feet and 688 billion cubic feet below last year’s total for the same period.

Demand remains a key factor for the commodity as weather remains cool with showers and thunderstorms expected around the east-central US. The benchmark futures for Natural Gas are currently trading at $ 2.83 per mmbtu, up 0.60% on the day. These are the highest levels in nearly three weeks for the counter. The MCX Natural Gas futures are trading at Rs 194.70 per mmbtu, adding 0.21% on the day.