Natural gas is currently trading at $2.6 per MMBtu.
Key factors at play in the natural gas market –
- Higher U.S. and global supplies keeping the natural gas price depressed.
- 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 at the Permian basin, which recently became the highest producing field of the world.
- Lower global price acting as a key downside catalyst. Price in the UK declined to 34 pence per therm, down from record 84 pence.
Now, for the inventory,
According to the latest numbers, working gas in the underground storage remains at 1.339 trillion cubic feet (Tcf). Stocks are 55 bcf less than last year, and 369 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 92 billion cubic feet against an expectation of 91 billion cubic feet build. Today 91 billion cubic feet build expected.
- EIA will release the inventory report at 14:30 GMT.
