FxWirePro: U.S. Natural gas inventory preview

Natural gas is currently trading at $2.67 per MMBtu.

Key factors at play in the natural gas market –

• Higher U.S. and global supplies keeping the natural gas price depressed, as winter is over across the globe.
• Supply bottlenecks remain the main source of concern in the United States. This year due to excess natural gas supply while drilling for shale oil pushed the price to negative $3.4 per MMBtu at the Permian basin.   
• Lower global price acting as a key downside catalyst. Price in the UK declined to 38 pence per therm, down from record 84 pence.
• The price is likely to move lower to test support around $2.42 area.

Now, for the inventory,

According to the latest numbers, working gas in the underground storage remains at 1.13 trillion cubic feet (Tcf). Stocks are 228 bcf less than last year, and 505 bcf below the five-year average. The chart from EIA shows the level of inventory. The second chart from investing.com shows weekly changes in inventory.

• Last week, the inventory rose by 23 billion cubic feet against an expectation of 10 billion cubic feet build. Today 29 billion cubic feet build expected.
• EIA will release the inventory report at 14:30 GMT.