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Week Ending September 28: US Natural Gas Supplies Were Flat



Weekly natural gas supplies 

PointLogic reported that US natural gas supplies were flat at 77.7 Bcf (billion cubic feet) per day from September 22–28, 2016. However, US natural gas supplies were 1.4% less compared to the same period in 2015. It was a key bullish driver for natural gas prices

Higher natural gas prices have a positive impact on natural gas producers’ earnings such as Rex Energy (REXX), EXCO Resources (XCO), and Antero Resources (AR).

Natural gas imports from Canada rose 3.4% to 6 Bcf per day from September 22–28, 2016. Imports from Canada were at 4.9 Bcf per day during the same period in 2015.

Read Monthly Natural Gas Production Rose in August 2016 and Does US Natural Gas Production Depend on Natural Gas Rigs? for more on natural gas production and forecasts.

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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), Rex Energy, EXCO Resources (XCO), and Antero Resources.

The rollercoaster ride in oil and gas prices impacts funds such as the United States Natural Gas ETF (UNG), 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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