Natural gas storage inventories increased by 62 Bcf for the week ending Apr. 27, according to the EIA’s weekly report. The report is bearish as the injection was larger than most market expectations. Prompt month was trading lower ahead of the report, and declines were extended following the EIA release, with the June 2018 contract trading down $0.045 per MMBtu at $2.709 MMBtu at the time of writing.
See the chart below for projections of the end-of-season storage inventories as of November 1, the end of the injection season.
This Week in Fundamentals
The summary below is based on PointLogic’s flow data and DI analysis for the week ending May 3, 2018.
- Dry gas production is up 0.4 Bcf/d with the Northeast again leading the gains. US production is back to a weekly average of 80 Bcf/d.
- Canadian imports are up 0.07 Bcf/d week-on-week.
- Domestic natural gas demand dropped 3.7 Bcf/d as temperatures continue to moderate with the spring season.
- LNG exports are up 0.46 Bcf/d recovering from prior week losses, returning to 3.8 Bcf/d level.
- Mexico exports are up 0.09 Bcf/d week-on-week.
- Total supply is up 0.43 Bcf/d and total demand is down 3.71 Bcf/d week-over-week. Expect a larger injection in next week’s release, in the 80s Bcf level.
The post EIA Reports First Injection of the Season with a 62 Bcf appeared first on Drillinginfo.