Natural gas stockpile data
The EIA (U.S. Energy Information Administration) will release the natural gas inventory report on September 24, 2015. For the week ending September 11, 2015, the natural gas in storage rose by 73 Bcf (billion cubic feet) to 3,334 Bcf. Similarly, the natural gas stockpile rose by 68 Bcf to 3,261 Bcf for the week ending September 4, 2015.
EIA natural gas stockpile estimates
Market surveys project that the natural gas stockpile rose by 105 Bcf for the week ending September 18, 2015. US natural gas inventories rose for the 24th consecutive week for the week ending September 11, 2015. However, warm weather could draw down the natural gas inventory. The consensus of the rising natural gas inventory implies that supply is rising and demand is slowing. It will have a negative impact on natural gas prices.
The current natural gas inventory is 15.80% more than the level of 2,878 Bcf last year. It’s also 125 Bcf more than the five-year average of 3,209 Bcf. The record stockpile could also put pressure on natural gas prices despite the warm weather forecast.
The long-term lower natural gas prices impact natural gas producers like EQT (EQT), Rice Energy (RICE), and Cimarex Energy (XEC). They account for 3.55% of the SPDR Oil and Gas ETF (XOP). These stocks’ natural gas production mix is more than 43% of their total production. The falling natural gas prices also impact energy ETFs like the Energy Select Sector SPDR ETF (XLE) and XOP.