US Natural Gas Inventories by Region: Week Ending May 5
US natural gas inventories by region
The EIA (U.S. Energy Information Administration) divides the US into the following five natural gas storage regions:
- South Central
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Movements in natural gas inventories for the storage regions between April 28, 2017, and May 5, 2017, are as follows:
- East – rose by 25 Bcf (billion cubic feet) to 350 Bcf
- Midwest – rose by 5 Bcf to 524 Bcf
- Mountain – rose by 2 Bcf to 155 Bcf
- Pacific – rose by 5 Bcf to 238 Bcf
- South Central – rose by 8 Bcf to 1,034 Bcf
Natural gas inventories and prices
US natural gas inventories were at 2,301 Bcf for the week ending May 5, 2017—13.6% higher than the five-year average, as we saw in previous part of this series. The EIA estimates that US natural gas inventories will be 3,938 Bcf by the end of October 2017—2% higher than the five-year average.
A fall in US natural gas inventories in the coming months is bullish for US natural gas (FCG) (BOIL) (GASL) (UNG) prices in 2017. Higher natural gas prices can have a positive impact on oil and gas producers’ profitabilities such as EXCO Resources (XCO), WPX Energy (WPX), Newfield Exploration (NFX), and Rice Energy (RICE). For more on inventories, read the previous part of this series.
The US natural gas rig count also plays a vital role in driving natural gas prices. We’ll take a look at the US natural gas rig count in the next part of this series.