- U.S. natural gas (UNG +3.7%) jumped 4.4% to $3.06/MMBtu, the highest settlement of the month, after EIA inventory data showed a smaller than forecast build of 78B cf, following a build of 106B cf in the prior week.
- Stockpiles fell week over week to 10.6% below last year’s level, but they remain 9.2% above the five-year average.
- Wells Fargo (NYSE:WFC) analysts say the bullish data marks a reversal of a four week trend in which the storage injection was higher than expected by 6B cf on average each week, and provides further confirmation that natural gas markets are at least 2B cf/day undersupplied.
- Based on current weather forecasts, Wells forecasts a 102B cf cumulative injection over the next two weeks, which would bring the storage surplus vs. the five-year average down to just 182B cf.
- Meanwhile, U.S. crude oil settled another 0.6% lower at $44.46/bbl after plunging 3.7% yesterday.
- Results are mixed among stocks of top nat gas producers: CHK -0.9%, COG +0.7%, EOG -2.4%, XOM -0.1%, RRC -0.4%, SWN +1.4%, EQT +0.1%, RICE -1.9%, AR +1.6%.
- ETFs: UNG, UGAZ, DGAZ, BOIL, GASL, FCG, GAZ, KOLD, UNL, GASX, DCNG, GAZB
- Now read: Exxon Mobil: Too Much Bad News?
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