EIA - Natural Gas Storage Report - June 1

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dan_s
Posts: 34463
Joined: Fri Apr 23, 2010 8:22 am

EIA - Natural Gas Storage Report - June 1

Post by dan_s »

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.
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 build is just 9 Bcf higher than the 5-year average. The last two weeks of May are always the largest builds of the year.

We definitely need some HOT weather in the eastern half of the U.S. to increase power generation demand.
Dan Steffens
Energy Prospectus Group
dan_s
Posts: 34463
Joined: Fri Apr 23, 2010 8:22 am

Re: EIA - Natural Gas Storage Report - June 1

Post by dan_s »

This is interesting (to me at least): Over the 13-week period (a quarter of a year) from February 25 to May 26 the net change in NG storage has been a total of 65 Bcf BELOW the 5-year average. This means that over the last quarter of a year, the U.S. natural gas market has been tighter than the 5-year average.

What has pushed Ngas prices this low is that during the 8-week period December 31 to February 24 the draws from storage were 536 Bcf above the 5-year average. It was the mildest two-month period EVER in the eastern U.S.

The upsteam gassers are reducing their drilling programs to reduce supply. We should see an increase in demand for power generation soon. Market forces are at work to get storage back inline, but we definitely need some Global Warming in the eastern U.S.
Dan Steffens
Energy Prospectus Group
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