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Natural Gas Supplies Rose Due to More Imports from Canada

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Sep. 16 2016, Published 9:45 a.m. ET

Weekly natural gas supplies 

Data provider PointLogic reported that US natural gas supplies rose 0.4% to 78.6 Bcf (billion cubic feet) per day from September 8–14, 2016. This was a key bearish driver for natural gas prices. However, US natural gas supplies are 0.9% less compared to the same period in 2015.

Lower natural gas prices will have a negative impact on oil and gas producers’ profitabilities such as EXCO Resources (XCO) and Rex Energy (REXX).

Natural gas imports from Canada rose 11.3% to 5.9 Bcf per day from September 8–14, 2016. Imports from Canada were at 5.4 Bcf per day during the same period in 2015.

The rise in weekly imports from Canada contributed to the overall rise in US natural gas supplies from September 8–14, 2016.

For more on natural gas production and forecasts, read Monthly Natural Gas Production Rose in August 2016.

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Impact of natural gas supplies  

Higher natural gas supplies will influence US natural gas inventories. For more on natural gas inventories, read Part 3 of this series.

Higher natural gas supplies also pressure natural gas prices. Lower natural gas prices will have a negative impact on oil and gas producers’ earnings such as Memorial Resources (MRD), EXCO Resources (XCO), and Rex Energy (REXX).

The ups and downs in oil and gas prices impact funds such as the United States Natural Gas ETF (UNG), the United States Brent Oil ETF (BNO), the ProShares Ultra Bloomberg Crude Oil ETF (UCO), the VelocityShares 3x Inverse Natural Gas ETN (DGAZ), and the First Trust ISE-Revere Natural Gas ETF (FCG).

Read the next part of this series for the latest updates on natural gas consumption.

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