Survey Calls for Another Below-Average US Natural Gas Storage Build

SEATTLE (Oil Monster): Analysts expect another below-average natural gas injection to US storage fields for the week ended June 18 as multiple regions near the halfway point of the season with sizable deficits to historical norms.

The US Energy Information Administration is expected to report a 63 Bcf injection for the week ended June 18, according to a survey of analysts by S&P Global Platts. Responses to the survey were narrow, ranging from a 59 to 71-Bcf injection. The EIA plans to release its weekly storage report on June 24 at 10:30 am.

A 63 Bcf injection would be less than the five-year average build of 83 Bcf during the corresponding week. It would expand stocks to 2.490 trillion cubic feet Tcf. US storage would measure 146 Bcf below the five-year average, and the deficit to 2020 would expand to 505 Bcf.

The injection would be nearly half the 115 Bcf injection that was reported for the same week in 2020. This highlights how much tighter the market has become between then and now, as production continues to underwhelm while export demand and power burn show no signs of slowing down, even despite a stronger balance-of-summer price strip that has almost doubled from a year ago.

Courtesy: www.spglobal.com