Increased stockpiles push natural gas futures prices down
By Tom Stundza -- Purchasing, 4/30/2009 11:33:00 AM
Natural gas storage levels rose slightly more than expected last week as demand for the fuel continues to be weak.
The Energy Information Administration’s weekly natural gas storage report says inventories held in underground storage in the lower 48 states rose by 82 billion cubic feet to about 1.82 trillion cubic feet for the week ended April 24, higher than analysts’ expectations.
The inventory level is 34% above the year-ago average of 1.36 trillion cubic feet, and 23% above the five-year average of 1.49 trillion cubic feet, according to the government data.
Since the EIA report was published this morning, natural gas futures for June deliveries had dropped 15¢ in midday trading on the New York Mercantile Exchange (Nymex) to $3.39 per 1,000 cubic feet.
Analysts had expected a boost of between 76 billion to 81 billion cubic feet, according to a survey by Platts, the energy information arm of McGraw-Hill ( MHP - news - people ) Cos.
The inventory level was 34 percent above the year-ago average of 1.34 trillion cubic feet, and 23 percent above the five-year average of 1.49 trillion cubic feet, according to the government data.
After the report, natural gas fell 10 cents to $3.306 per 1,000 cubic feet on the New York Mercantile Exchange.
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