EIA - Natural Gas Storage Report - June 24

[dan_s]

Working gas in storage was 2,482 Bcf as of Friday, June 18, 2021, according to EIA estimates. This represents a net increase of 55 Bcf from the previous week.
Stocks were 513 Bcf less than last year at this time and 154 Bcf below the five-year average of 2,636 Bcf.
At 2,482 Bcf, total working gas is within the five-year historical range.

This is a bullish report because the build of 55 Bcf was 10 Bcf lower than my guess and at the low end of pre-release estimates.

If we just have a normal summer and LNG exports remain near our export capacity, there is little chance of gas in storage to get back to the 5-year average before the next winter heating season arrives in mid-November.

[dan_s]

AEGIS Notes

EIA reported a build of 55 Bcf for the week ending 6/18/2021. This was smaller than the median estimate of 64 Bcf. Today's stat fell outside the expected range, which was 72 Bcf on the more bearish end, and 56 Bcf on the more bullish end.

Prices were up in the five minutes following the announcement, to $3.371, from $3.325 just before 9:30am.

Inventories for the US are now at a deficit of 513 Bcf to last year and a deficit of 154 Bcf to the five-year average. < Definitely a bullish start to the summer for natural gas. A hot July could push prices over $3.50, but we are already seeing some utilities bring on more coal fired power plants.