Natural Gas Inventories Continue Rising


The U.S. Energy Information Administration (EIA) today reported the U.S. natural gas stocks rose by a total of 77 billion cubic feet, somewhat higher than the 71 billion cubic feet that analysts were expecting. Natural gas futures prices were slightly higher in advance of the EIA's report at around $3.42 per thousand cubic feet, and fell slightly following the EIA report.

The EIA reported that U.S. working stocks of natural gas totaled 3.65 trillion cubic feet, about 272 billion cubic feet higher than the five-year average of 3.37 trillion cubic feet. Working gas in storage totaled 3.38 trillion cubic feet for the same period a year ago.

U.S. natural gas inventories are about 8% higher than they were a year ago and about 8.3% higher than the 5-year average.

Natural gas futures prices are about 80% higher than they were at their low point of $1.90 per thousand cubic feet in April of this year. Working gas in storage remains above the high end of the five-year average.

Here is how stocks of the largest U.S. natural gas producers are reacting to today's report:

Exxon Mobil Corp. (NYSE: XOM), the country's largest producer of natural gas, is up about 0.8% at $92.39 in a 52-week range of $72.63 to $92.57.

Chesapeake Energy Corp. (NYSE: CHK) is up about 1.7% at $19.33 in a 52-week range of $13.32 to $29.87.

EOG Resources Inc. (NYSE: EOG) is up about 0.9% at $112.05 in a 52-week range of $74.73 to $119.97.

The U.S. Natural Gas Fund (NYSEMKT: UNG) is flat at $22.00 in a 52-week range of $14.25 to $36.60. The Market Vectors Oil Services ETF (NYSEMKT: OIH) is up about 1.1% at $39.61 in a 52-week range of $32.54 to $45.14. The first fund tracks spot prices; the second includes major drillers and services companies.

Paul Ausick

Filed under: 24/7 Wall St. Wire, Commodities, Oil & Gas, Research Tagged: CHK, EOG, OIH, UNG, XOM