The latest Energy Information Administration (EIA) natural gas storage data recorded a build of 53 Billion Cubic feet (Bcf) for the week ending August 11th. The increase was above the 28 Bcf recorded last week and also higher than consensus forecasts of a 47 Bcf increase.
Stocks overall are 7.6% below the year-ago level and 1.8% above the five-year average and the smallest margin above the 5-year average since the first quarter of 2017.
There was a further increase in stocks in the East and Midwest for the week. Stocks did decline in the South for the fifth successive week, but the pace of reduction slowed and there was a small increase in Pacific stocks.
There has been further spiky trading in the dollar during the past 24 hours and oil prices have remained under net selling pressure with WTI dipping to below $47.0 p/b.
Although the storage figure was above expectations, natural gas prices spiked higher after the release with a move to near $2.91 from $2.88 before a retreat to $2.90 with the overall price action suggesting a significant covering of short positions in evidence.
The latest weather conditions continue to suggest that hotter conditions will develop over the next few days and underlying natural gas demand is likely to increase which will support prices. There will, however, be concerns that overall summer demand will start to fade within the next few weeks.