The EIA reported for the week ending July 7, 2017 a net gas storage injection of 57 BCF this morning. This week’s report was below the market’s expectation which was centered around a 59 BCF injection. It is bearish against 64 BCF injected last year and bearish against the five-year average injection of 59 BCF.

August 2017 NYMEX natural gas futures are up $0.027 at $3.012/MMBtu. August futures have moved around a bunch this week for a total gain of $0.12 going into this morning’s trading following wet conditions in the Midwest and East and warmer than average temperatures in parts of the West. To increase gas export from the US, there are three LNG terminals under construction in Texas which will double the total US ports currently in use. The International Energy Agency (“IEA”) believes the United States will surpass Qatar and Australia as the largest gas exporter by 2022.

August 2017 NYMEX crude oil futures are currently $0.67 higher at $46.16/Bbl. OPEC members are not limiting production, as evidenced by production rises of 393,000 barrels per day in June. Despite the market being oversupplied, the IEA estimates increased oil consumption in Germany and the United States, which is helping boost oil demand and pricing.

Natural gas inventories currently stand at 2,945 BCF which is 289 BCF less than from this same week last year and 172 BCF above the five-year average.