Natural Gas Prices Tick Up Amid Storage Report
On Thursday, U.S. natural gas futures experienced a notable uptick, climbing to $1.75 per million British thermal units (MMBtu). This increase follows a slight downturn of 0.9% in the previous session. The market’s attention is now tuned to an upcoming federal report, which is anticipated to reveal a modest reduction in the weekly increase of gas stored.
Natural Gas Prices Tick Up
Natural Gas Prices Tick Up Amid Storage Report
Industry analysts predict that U.S. utilities added about 54 billion cubic feet (bcf) of natural gas to their storage facilities last week. This figure contrasts the 75 bcf increase recorded during the corresponding week last year, highlighting a potentially tightening supply scenario. Despite this smaller increment, overall gas stockpiles are expected to be substantially higher—up by 36%—compared to the seasonal average. This surplus is primarily attributed to high initial storage levels and a relatively mild winter season.
LNG Feed Gas Levels Rebound from Low
On a related note, liquefied natural gas (LNG) feed gas levels increased on Wednesday, bouncing back from a three-month low of 9.5 billion cubic feet per day (bcfd) seen on Tuesday. The dip was primarily due to reduced activities at major LNG facilities, including Freeport, Cameron, Cheniere Energy’s Sabine Pass, and Corpus Christi.
From a broader perspective, the U.S. natural gas supply landscape has been contracting. Production across the country has decreased by about 10% this year, as leading energy companies such as EQT and Chesapeake Energy have postponed well completions and reduced drilling efforts. This reduction in production activities adds another layer of complexity to the volatile natural gas market, impacting prices and supply chain dynamics.
