The natural gas inventory increased 52 Bcf in the week ended September 16
Natural gas prices closed down today after hitting a high of $3.05, yesterday. The EIA reported a natural gas injection of 52 Bcf for the week ended September 16, 2016, weakening natural gas prices today, which closed at $2.99 per MMBtu.
Analysts believed the build would be slightly larger at 53 Bcf, and while there was still a build, natural gas inventories are growing at a much slower rate than this time last year. Historic late summer heat has led to record demand for gas-fired power at a time of declining drilling activity, helping to work off the glut in natural gas.
Teri Viswanath, managing director of natural gas at PIRA in New York, told The Wall Street Journal that the reaction to the latest data may take some of the froth out of the market, but sentiment toward natural gas has become more positive in recent weeks.
“The weekly numbers are a good excuse to rein in some of the buyer enthusiasm that appears to be taking place in response to more constructive fundamentals and the real possibility that we can get through the injection season and manage the excess supply,” Viswanath said. “The floor has risen for natural gas.”
