Thursday, July 9, 2009

Gas Inventories Rise Less Than Expected

Below is a short article from AP noting that gas inventories did not increase as much as expected last week. This is good for the price of natural gas. Increased inventories can indicate excess supply, which is bad for prices. Of course, it might reverse next week.

NEW YORK (AP) -- Natural gas stockpiles increased less than expected last week, the government said Thursday.

The Energy Department's Energy Information Administration said in its weekly report that natural gas inventories held in underground storage in the lower 48 states rose by 75 billion cubic feet to about 2.796 trillion cubic feet for the week ended July 3.

Analysts had expected a boost of between 80 billion and 84 billion cubic feet, according to a survey by Platts, the energy information arm of McGraw-Hill Cos.

The inventory level was 19 percent above the five-year average of about 2.344 trillion cubic feet, and 27 percent above last year's storage level of about 2.195 trillion cubic feet, according to the government data.

Natural gas rose about 8 cents to $3.432 per 1,000 cubic feet on the New York Mercantile Exchange.

No comments: