Analysts Expect Triple-Digit Rise in U.S. Natural-Gas Inventories - MarketWatch

Analysts Expect Triple-Digit Rise in U.S. Natural-Gas Inventories - MarketWatch

By Dan Molinski

U.S. government natural-gas data due Thursday are expected to show inventories increased last week by a bit more than normal as near-perfect weather in north Texas and other key consumption regions weakened demand.

The Energy Information Administration is expected to report that gas in storage rose by 101 billion cubic feet during the week ended May 19, according to the average forecast of 12 analysts, brokers and traders surveyed by The Wall Street Journal.

Estimates ranged from increases of 95 bcf to 109 bcf. The average forecast compares with an 88-bcf injection for the same week last year, and a five-year average rise of 96 bcf.

The EIA is scheduled to release its natural-gas storage data for the week at 10:30 a.m. EDT Thursday.

A 101-bcf increase would mean gas stockpiles totaled 2.341 trillion cubic feet, 30% above last year's total at this time, and 17% above the five-year average for this time of year.

Natural-gas inventories were in a bullish deficit compared with historical averages throughout most of 2022 due to strong gas-fired heating and cooling demand, as well as rising exports of liquefied natural gas.

But gas production jumped to record highs in early 2023, while demand for gas has struggled amid a U.S. manufacturing sector that has contracted for six months consecutively, and a relatively mild winter and spring. LNG exports have recently softened as well.

This created a natural-gas inventory surplus and has caused prices in futures markets to drop by 47% year to date, to around $2.370/mmBtu.

Write to Dan Molinski at dan.molinski@wsj.com