Nat-Gas Prices Recover on Smaller Storage Build Expectations

Nat-gas prices rebounded on Wednesday after initially falling due to forecasts of normal seasonal weather in the US, potentially limiting demand for heating or air conditioning.

However, expectations of a smaller-than-average build in weekly gas storage led to a recovery, with November Nymex natural gas (NGX26) closing up 0.015 (+0.50%) on Wednesday.

The consensus is that Thursday's weekly EIA nat-gas inventories rose +63 bcf for the week ending September 25, below the 5-year average of +80 bcf.

US dry gas production on Wednesday was 110.4 bcf/day (+1.3% y/y), while lower-48 state gas demand was 71.6 bcf/day (+0.6% y/y), according to BNEF.