Natural gas kept in underground storage across the US Lower 48 was estimated at 2.631 tcf as of June 2, up 106 bcf from the previous week, the US Energy Information Administration reported.
The gas storage total was 332 bcf less than the same time last year and 237 bcf above the 5-year average of 2.394 tcf, the Weekly Natural Gas Storage Report said.
J. Marshall Adkins of Raymond James & Associates Inc. said the 106-bcf injection was above analysts’ consensus estimate of a 100-bcf injection and RJA’s estimate of 99-bcf injection.
“This implies that the market was 3 bcfd looser than last year on a weather-adjusted basis, and it has averaged 1.2 bcfd looser over the past 4 weeks,” Adkins said.
“Fundamentally speaking, 2017 is proving to be a positive year for natural gas prices as demand will be pushed by exports of gas to Mexico and a continued ramp up of LNG exports, while supply should see some effects of lower imports from Canada,” Adkins said. “Longer term, we believe relentless gas supply increases and growth in renewables that are increasingly becoming more cost competitive with gas will put further pressure on Henry Hub gas prices.”