The Energy Information Administration (EIA) reported a 102-Bcf build in the US working natural gas volumes in underground storage in the week ended May 29. The increase is less than the market’s expectations of about 111-Bcf injection, but it appeared to have a limited impact on Henry Hub futures pricing. The growth was 1 Bcf lower than the five-year average build of 103 Bcf and 16 Bcf, or 13.6%, below the 118-Bcf injection in the same week in 2019.
According to EIA’s data, the total inventory during the week stood at 2.714 Tcf, 762 Bcf, or 39%, higher than 1.952 Tcf a year ago and 422 Bcf, or 18.4%, higher than the five-year average of 2.292 Tcf.
After the data release, the natural gas futures contract for July at the NYMEX remained steady at $1.82/MMBtu. Henry Hub NYMEX futures for the balance of summer stood at $2.03/MMBtu, relatively flat compared to a day and a week earlier.
Demand for feedgas to produce LNG declined by nearly 1 Bcfd last week, but it was offset by an increase of 2.9 Bcfd from the power sector. Meanwhile, natural gas supply in the country rose slightly by less than 100 MMcfd from a week earlier to 90.4 Bcfd.
