According to a survey by The Wall Street Journal, natural-gas inventories are likely to have increased last week due to warmer-than-normal weather across the U.S. This has led to a decrease in demand for natural gas. The Energy Information Administration (EIA) is expected to report that gas in storage rose by 34 billion cubic feet in the week ended Nov. 10, according to analysts, brokers, and traders.
Projected Inventory Build
The estimates for the increase in natural gas inventories range from 48 Bcf to a decline of 20 Bcf. This anticipated inventory build comes after a small draw on stocks the previous week when colder weather led to increased heating demand.
EIA Report Delay
The EIA did not release its natural-gas storage report last week due to a system upgrade. The report is expected to include information for the week ended Nov. 3 on Thursday.
Current Storage Levels
As of Oct. 27, natural gas in underground storage in the lower 48 states stood at 3.78 trillion cubic feet, which is 5.7% above the five-year average, according to the EIA.
The price of natural-gas futures for December has recently climbed 4% higher to $3.231.