Tight Storage Injections Expected Despite Cooling Demand Decline

The natural gas storage injection is expected to be tight despite a cooling demand decline. NGI's price and data analysts are modeling a 31 Bcf build for the week ended Aug. 28, following last Thursday's reported 16 Bcf injection by the US Energy Information Administration (EIA). This modest decline in weekly spot prices at Henry Hub is reflected in the average price of $2.805/MMBtu.

However, a 31 Bcf build would still fall short of the 50 Bcf injection during the same week last year as well as the five-year average of 37 Bcf. The EIA reported that inventories as of Aug. 28 stood at 3,184 Bcf, which is below the year-earlier levels but above the five-year average.