• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 10 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 7 hours How Far Have We Really Gotten With Alternative Energy
  • 9 hours If hydrogen is the answer, you're asking the wrong question
  • 4 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 6 days The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
  • 22 hours Biden's $2 trillion Plan for Insfrastructure and Jobs
  • 4 days "What’s In Store For Europe In 2023?" By the CIA (aka RFE/RL as a ruse to deceive readers)

U.S. Natural Gas Prices Plummet On Rail Deal, Storage Build

U.S. natural gas futures fell 8% on Thursday as the rail union reached a temporary labor agreement with its workers.

Henry Hub natural gas futures (NGV2) fell $0.728 MBtu (-7.99%) to $8.397 on the railway deal, without which would have increased the demand for natural gas in an already tight market. A rail industry disruption would have disrupted the flow of coal.

A larger than anticipated storage build for natural gas also weighed on prices, which were trading near record highs due to the tight market.

On Thursday, the Energy Information Administration’s (EIA) Weekly Natural Gas Storage Report showed that total working gas in underground storage in the Lower 48 rose to 2,771 Bcf for the week ending September 9, up from 2,694 Bcf in the week prior. While this is up from the week and a bearish signal for prices, working gas in storage is still down  7.4% from this time last year, and 11.3% lower than the five-year average of 3,125 Bcf. 

The largest gain in terms of working gas in underground storage was seen in the Midwest, followed closely by the East. Working gas in the Pacific region fell for week ending September 9.

The build in inventories and subsequent drop in prices could help alleviate some of the price pressures currently plaguing US nat gas buyers.

The storage build was above analyst expectations.

ADVERTISEMENT

The rail deal and storage build combo was enough to send prices substantially lower, and fell in lockstep with falling crude oil prices as well.

By Julianne Geiger for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment
  • George Doolittle on September 16 2022 said:
    These high prices simply get passed on to the consumer who either buy or sell the product. Utility stocks which consume by far the most natural gas have not in the been harmed by this jump in prices. I would think an oil storage boom would be the result going into Winter as production increases but supplies continue to surge due to demand concerns (collapse in Fed Ex stock by way of example.)

    Anyhow this is ideal weather conditions for running pure BEV systems in the USA so hard to see much demand for gasoline going forward for the next 6 Months. Worse still if the USA is entering into a major recession. Plus Russia has been wholly and totally defeated in their war upon not just Ukraine but all of Europe as well. They supply a lot more than just oil to the Western World. *"Proof of the pudding is in the eating"* absolutely true tho of course so we'll see what prices in fact happen to over the coming Months.

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News