US Natural Gas Storage Picture Tightens Despite Sliding Prices
The US natural gas storage picture is likely to tighten even as Henry Hub prices slide. According to NGI's analysis, a bout of hotter-than-normal temperatures across the continental United States last week will lead to some meaningful changes in the Lower 48 storage supply balance.
NGI expects the latest US Energy Information Administration (EIA) Weekly Natural Gas Storage Report for the week ended Sept. 11 to show an injection of 50 Bcf, up 10 Bcf week/week. This would be 37 Bcf lower than the build from one year ago and 24 Bcf lower than the previous five-year average.
The market seems unimpressed, however, as NGI's Weekly Henry Hub index shed 11.5 cents last week to $2.79/MMBtu. Meanwhile, managed money segment increased its net short Henry Hub index price futures position by more than 20% last week.