Natural Gas Prices Rise on Late-Season Heat and Tight Storage
Natural gas prices ended the week on an upward note, supported by lingering September heat and strong power-sector demand.
A smaller-than-normal storage injection added to the support, reducing the inventory surplus over historical levels. However, gains were somewhat restrained by record U.S. natural gas production and expectations that temperatures will moderate as September progresses.
The latest EIA report showed a 44 Bcf storage build for the week ended Sept. 11, below the 49 Bcf expected by analysts and well below the five-year average injection of 74 Bcf.
Inventories reached 3,298 Bcf, 118 Bcf above the five-year average but 122 Bcf below the year-ago level. The surplus over the five-year average narrowed from 148 Bcf in the previous week, reflecting the impact of persistent late-season heat on power-sector demand.
The tight storage conditions and solid LNG demand provided support for natural gas prices despite abundant domestic supply.