• 4 minutes Your idea of oil/gas prices next ten years
  • 7 minutes WTI Heading for $60
  • 13 minutes Could EVs Become Cheaper than ICE Cars by 2023?
  • 3 hours Pros and Cons of Coal
  • 3 hours Why does US never need to have an oil production cut?
  • 3 hours US continues imports of Russian gas which it insists Europe should stop buying
  • 18 mins Oil Prices
  • 3 days Germany Discusses Lifting Ban on Deporting Syrians
  • 3 hours French Fuel Protests
  • 23 hours Regular Gas dropped to $2.21 per gallon today
  • 18 hours Warren Buffett
  • 22 hours Is California becoming a National Security Risk to the U.S.?
  • 14 hours And Just Like That, Everybody Stopped Talking About $100 Oil
  • 2 days Trump administration slaps sanctions on Saudis over Khashoggi's death
  • 2 days Pence says South China Sea Doesn't Belong To Any One Nation
  • 2 days Commission: U.S. Could Lose Wars With Russia, China
Alt Text

China Is Single-Handedly Solving The Gas Glut

China’s growing natural gas usage…

Alt Text

What Is Behind Tajikistan’s Skyrocketing Fuel Prices?

Tajikistan’s fuel business is largely…

Alt Text

Why Natural Gas Prices Just Tanked

Natural gas prices crashed again…

Drilling Info

Drilling Info

Since 1999, Drillinginfo has been a leading provider of oil and gas data and technology.

More Info

Trending Discussions

Bearish News For Natural Gas As Inventories Continue To Rise

Natural gas storage inventories increased by 106 Bcf for the week ended June 2, per EIA. The report is bearish with the build coming above market expectations, which were calling for a 98-Bcf increase in stocks. The full range of forecasts was between 80 Bcf and 111 Bcf.

The Henry Hub prompt contract (July 2017) traded as low as $2.93 on Monday, but it went back above $3.00 on Tuesday and Wednesday with warmer temperatures in the forecast. However, the larger-than-expected build pushed gas prices below the $3.00 mark again, but only temporarily. The July 2017 gas price is up 1-2 cents following the EIA report and currently trading at $3.04 per MMBtu.

Working gas storage inventories increased to 2.631 Tcf, level 332 Bcf below last year but 237 above the 5-year average. See Drillinginfo EIA’s chart below. This graphic shows projections for end-of-season inventories as of Nov 1. Two scenarios are included for summer injections (April-Oct) that result in inventories between 3.62 Tcf and 4.17 Tcf.

(Click to enlarge)

Gas Prices Finding Support on Forecasts of Summer-Like Temperatures

Warmer-than-normal temperatures are expected early next week that will drive power burn up and reach 30 Bcf/d. Demand from the power sector averaged 22-23 Bcf/d in April and May, which is in line with DI’s projections. For June, under normal weather and average gas prices ~$3.3-$3.5 per MMBtu, DI projected power burn to be 29.1 Bcf/d. Due to the recent losses in prices, DI’s power burn forecast has an upside risk of 1 Bcf/d as lower gas prices increase the competitiveness of gas over coal leading to higher gas utilization for power consumption.

On the supply side, dry gas production continues showing gains every week and in June so far is almost flat to June 2017. This could be the first month when production is comparable to last year’s output. However, year-to-date production levels remain about 2 Bcf/d below 2016 levels.

By Drilling Info

More Top Reads From Oilprice.com:




Back to homepage

Trending Discussions


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
-->