Summary
Working gas in storage was 3,299 Bcf as of Friday, August 16, 2024, according to EIA estimates. This represents a net increase of 35 Bcf from the previous week. Stocks were 221 Bcf higher than last year at this time and 369 Bcf above the five-year average of 2,930 Bcf. At 3,299 Bcf, total working gas is within the five-year historical range.
Working Gas In Underground Compared With 5-Year Range
EIA Storage Report
Commentary
Early storage estimates submitted to Reuters for the week ended Aug. 16 ranged from a build of 20 Bcf to 42 Bcf, with an average increase of 27 Bcf. A Bloomberg survey outlined injections of 21 Bcf to 42 Bcf, with consensus at 25 Bcf. The estimates compare with a five-year average increase of 41 Bcf. NGI modeled a build of 27 Bcf. If analysts’ models are accurate, a trend of bullish builds would continue relative to historical norms.
Wood Mackenzie estimated Lower 48 natural gas production Wednesday at 100.0 Bcf, down from 100.5 Bcf a day earlier and well below the around 103 Bdf/d earlier in the season. Production was expected to rebound to 101 Bcf/d in the coming weeks as a spate of maintenance events in the Permian Basin and Appalachia are concluded.
Customer Takeaway
This was a very robust injection into inventory. The natural gas markets were up over the last week because of a terrible inventory report last week and bad production numbers. After several days of rallying, the markets have come back down. The September contract is near $2.10. There will be opportunities to purchase gas and electric at very low levels.
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