By Matthew Bradbard: Natural gas futures are higher by 5% as of this post after the weekly inventory report showed a smaller than expected build in storage levels. The EIA showed storage levels rose by 58 billion cubic feet in the week ending July 12th. Analyst surveyed prior to the numbers release had anticipated the report to show 64 bcf. Stocks stand at 2.745 trillion cubic feet, 1.2% below the 5-year average and 13.1% below last year's levels.
Natural gas futures rallied 11% yesterday, increasing by $0.6 to settle at $6.149 per million British thermal units (MMBtu) during trading yesterday on the New York Mercantile Exchange (NYMEX). This is the highest price seen for the commodity’s futures in over five years. The price hike is largely attributable to latest weather forecasts, which have spurred expectations of a spell of severe cold across Midwest and Northeast region for the next two weeks.
By Lior Cohen:The natural gas market remained stagnant as the price of natural gas and United States Natural Gas (UNG) remained relatively unchanged on a weekly scale. According to the U.S. Energy Information Administration, the recent natural gas injection was above the five-year average.
Submitted by Gail Tverberg via Our Infinite World blog, Quiz: 1. How much natural gas is the United States currently extracting? (a) Barely enough to meet its own needs(b) Enough to allow lots of exports(c) Enough to allow a bit of exports(d) The United States is a natural gas importer
By R.J. Chopin:The Weekly Natural Gas Storage Report, released 3/15/12, reported further declines in US Natural Gas inventories (-64 Bcf). This marks the 17th. consecutive weekly decline for natural gas storage. Natural gas storage has declined from a Nov. 18, 2011 high of 3,852 Bcf to 2,369 Bcf reported on 3-15-12. This represents a 38% reduction in NG storage during the past 4 months.
By Mark Anthony:I am having a great debate on Seeking Alpha with Paulo Santos on the market fundamentals of the U.S. coal and natural gas sectors. Our debate interested a lot of SA readers as reflected in the comments.