EIA - Natural Gas Storage Report - June 17

Post Reply
dan_s
Posts: 34471
Joined: Fri Apr 23, 2010 8:22 am

EIA - Natural Gas Storage Report - June 17

Post by dan_s »

Working gas in storage was 2,427 Bcf as of Friday, June 11, 2021, according to EIA estimates.
This represents a net increase of 16 Bcf from the previous week.
Stocks were 453 Bcf less than last year at this time and 126 Bcf below the five-year average of 2,553 Bcf.
At 2,427 Bcf, total working gas is within the five-year historical range.

On the surface this is an extremely bullish report because the 16 Bcf build compares to the 5-year average build for the same week of 89 Bcf. However, the small build is net of a "reclassification". The reclassification does reduce the amount of "working gas", which is bullish.

AEGIS Notes

Pacific Gas and Electric has reclassified 51 Bcf (the largest ever) of natural gas in its storage system from working gas to base gas. The official number reported by the EIA was 16 Bcf, however, this is misleading as it includes the reclassified gas.

EIA reported an implied build of 67 Bcf for the week ending 6/11/2021. This was smaller than the median estimate of 70 Bcf. Today's stat fell within the expected range, which was 76 Bcf on the more bearish end, and 64 Bcf on the more bullish end.

Prices were down in the five minutes following the announcement, to $3.215, from $3.229 just before 9:30am.
Dan Steffens
Energy Prospectus Group
Post Reply