EIA Reports Natural Gas Inventories Rise 72 Bcf, Prices Dip Lower

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.

Natural gas prices had proved resilient on Friday with gains on the session despite a fresh slide in crude oil prices of over 3.5% on the day.

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.

Tim is a contributing author to EconomicCalendar.com. He is an economist and has been involved in financial markets for over 20 years as an analyst. He specialises in global economic trends, macro policy and central banks. Extensive knowledge, experience and data mining is used to anticipate trends in equities, bonds and forex with a contrarian slant. He is a graduate of the University of York with a degree in Economics/Econometrics.