Leading up to today's EIA Natural Gas Storage report, Natural gas prices rallied a little higher as natural gas traders were attempting to move the market higher as it traded sideways for the 3rd day.
The November wholesale contract was higher by $0.019 cents on the day as Tuesday’s warmer weather raised the prospect of a delayed start to winter demand for natural gas powered heating offset by the meteorologist’s continued call of below normal temperatures for the populated areas of the United States.
A series of smaller-than-expected injections of natural gas into storage has raised hopes that the overhang of supply is dissipating, helping to push prices to a 22-month high last week. Many market participants have been counting on a combination of winter heating demand and lower drilling activity to lead to higher prices. But weather is expected to be mild in the near term, which could delay the onset of lower temperatures that bring increased demand for natural-gas-powered heating.
See a recap of previous weeks EIA storage reports here.
EIA Natural Gas Storage Report 10-20-16
Working gas in storage was 3,836 Bcf as of Friday, October 14, 2016, according to EIA estimates. This represents a net increase of 77 Bcf from the previous week. Stocks were 46 Bcf higher than last year at this time and 185 Bcf above the five-year average of 3,651 Bcf. At 3,836 Bcf, total working gas is above the five-year historical range.
Expectations called for a build of approximately +73 bcf. As of 10:33 ET, natural gas futures were trading lower by 1% to $3.138.
Recap of previous weeks EIA Natural Gas inventory Reports.
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