EIA Natural Gas Storage Report 06-01-23
Working gas in storage was 2,446 Bcf as of Friday, May 26, 2023, according to EIA estimates. This represents a net increase of 110 Bcf from the previous week.
Analyst expected today’s EIA weekly storage report to show an injection at about 107 Bcf.
Stocks were 557 Bcf higher than last year at this time and 349 Bcf above the five-year average of 2,097 Bcf. At 2,446 Bcf, total working gas is within the five-year historical range.
The 12- and 24-month natural gas strip prices dropped from last week, settling at $2.959/Dth (down 4.52%) and $3.339/Dth (down 3.39%) respectively.
From May-June, US gas-fired power demand typically rises sharply, outpacing the drop in domestic heating demand over the same period. In the last three years, power burn jumped by an average 8.8 Bcf/d from May to June – offset only partly by a 4.6 Bcf/d drop in residential-commercial demand. This June, the power burn demand ramp-up could be even more pronounced due to unseasonably hot weather, low gas prices and continued changes to coal generation.
There will be warmth building over the middle of the nation expanding across the North and will reach the East Coast by the end of this week. From there blocking (-NAO) shows up sending a series of cool fronts into the eastern United States and temperatures back down to normal and below normal next week. As the cooling trough digs into the East, the main ridge will retrograde back toward the northern Rockies and Northwest next week, but SoCal and the Southwest fail to capture this warmth.
The weather model differs in the 11-15 with the European and Canadian going warmer than the American, but the Euro/Canadian has had a warm bias this spring and we lean more into the American. This would bring warmth to the Northwest/Rockies, cooler across the Southwest with a mixed pattern downstream that averages not too far from normal in the East, but we will have to keep an eye out for some above-normal temperatures in the South.
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Read more: EIA
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