Natural Gas

August 22, 2024 Natural Gas Report

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

EIA Storage Report

Storage EIA

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.

Reach out and learn how QFB Energy can help your business in there natural gas procurement. Contact us Today!Â