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U.S. natural gas storage sees minimal injection as exports rise

Well below market expectations, the United States added just 18 billion cubic feet to its natural gas inventory for the week ending August 12, the Energy Information Administration (EIA) noted Thursday in its weekly natural gas inventory report.

The low injection rate for the week, relative to expectations of around 30 billion cubic feet, sent natural gas futures higher early Thursday, according to Natural Gas Information.

As fall and winter approach, this is a relatively low injection rate. In the same week last year, inventories gained 46 billion cubic feet.

Recently, U.S. natural gas futures have been gaining momentum, surpassing anything seen in over a decade on increased export momentum that could leave the country short of cash. supply.

Earlier this week, Bloomberg reported that US supplies are still more than 10% below normal levels for this time of year.

Natural gas futures had fallen slightly earlier in the week as traders calculated supply was picking up, ahead of Thursday’s report from the EIA.

Overall, natural gas prices remained very volatile throughout the year.

On Monday, U.S. natural gas futures fell. On Tuesday, they jumped 7%. On Wednesday, prices made new highs but closed with slight losses.

Thursday, at the time of this writing, U.S. Natural Gas Futures were trading around 0.80% shortly after the stocks were released by the EIA.

The EIA also noted on Thursday that exports of natural gas from Texas to Mexico increased significantly, based on the most recent data from May 2022. In May, West Texas pipeline exports to Mexico averaged 1.6 billion cubic feet per day. This is a record high and represents a 12% increase from January to May.

The increase in West Texas exports to Mexico has doubled since 2019.

By Charles Kennedy for Oilprice.com

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