Denver CO — US natural gas in storage increased by 63 Bcf to 2.568 Tcf for the week ended August 31, Energy Information Administration data showed Thursday.
The build was slightly more than an S&P Global Platts' survey of analysts calling for a 60-Bcf addition.
The injection was more than the 60-Bcf build reported during the corresponding week in 2017 but less than the five-year average addition of 65 Bcf, according to EIA data.
As a result, stocks were 643 Bcf, or 20%, less than the year-ago level of 3.211 Tcf, and 590 Bcf, or 19%, less than the five-year average of 3.158 Tcf.
The injection was less than the 70-Bcf build reported the week prior as population-weighted temperatures increased by 2 degrees across the Lower 48 states, adding 9 Bcf of additional gas-fired power demand, according to S&P Global Platts Analytics.
The NYMEX October Henry Hub natural gas futures slid down 1.3 cents to $2.782/MMBtu following the 10:30 am EDT storage announcement. The prompt month has fallen by 18 cents over the past two weeks despite the low storage inventory. Even though Platts Analytics expects slightly larger builds over the next two weeks, they are still less than the five-year average and will further widen the deficit.
Platts Analytics expects storage to peak at approximately 3.3 Tcf before the switch to withdrawals in early November. If so, it would be the lowest level to start the heating season since 2005, when stocks peaked at 3.2 Tcf. A colder-than-normal winter could push up prices due to the low inventory despite production gains.
