Summary
Working gas in storage was 3,629 Bcf as of Friday, October 4, 2024, according to EIA estimates. This represents a net increase of 82 Bcf from the previous week. Stocks were 124 Bcf higher than last year at this time and 176 Bcf above the five-year average of 3,453 Bcf. At 3,629 Bcf, total working gas is within the five-year historical range.
Working Gas in Underground Storage
EIA Storage Report
Commentary
Beyond the storm, analysts were looking for seasonally light storage injections over the past couple months to continue with Thursday’s U.S. Energy Information Administration (EIA) inventory print. A Reuters survey found Injection estimates for the week ended Oct. 4 spanning 57 Bcf to 77 Bcf. It landed at a median of 72 Bcf. Bloomberg’s poll found the same range and a median of 75 Bcf. NGI modeled a 77 Bcf increase. That compares with a five-year average build of 96 Bcf.
Customer Takeaway
The hurricane activity in the gulf has diminished demand more than reducing supply. The November contract moved up to $3.00 last week before selling off to $2.58 this week. Production is back above 100 Bcf per day and holding. The balance of winter month pricing is down to $3.08, from $3.335 on October 3rd. We should see opportunities below $3.00 for winter months very soon.
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