The latest Energy Information Administration (EIA) natural gas storage data recorded a build of 72 Billion Cubic feet (Bcf) for the week ending June 30th. The increase was above the 46 Bcf recorded last week and also above consensus forecasts of a build close to 60 Bcf for the week.
Stocks overall are 9.0% below the year-ago level and 6.9% above the five-year, unchanged from the previous week.
There were further significant increases in stocks in the East and Midwest for the week and all regions posted an increase from the previous data. Stocks in the East and Pacific regions remain below the five-year average.
Prices weakened after the storage data with losses to around $2.89 per mBtu from $2.92 and there will be the threat of choppy action over the remainder of Friday driven by position adjustment.
The latest Baker-Hughes rig-count data will be monitored after the European close on Friday. The latest positioning data will also be watched very closely over the weekend with futures prices vulnerable to further erosion if there has been a big build in non-commercial longs.
The latest weather forecasts suggest hot conditions will intensify across the US next week and, in this context gas prices should be resilient at lower levels.