The EIA reported a net gas storage injection of 28 BCF this morning for the week ending July 14, 2017. This week’s report was below the market’s expectation which was centered around a 32 BCF injection. It is bearish against 34 BCF injected in this same week last year and bearish against the five-year average injection of 47 BCF.
August 2017 NYMEX natural gas futures are currently down $0.036 at $3.03/MMBtu. The drop follows gains of $0.042 over the last three trading sessions. In the national weather forecast, a meteorologist has dubbed the “ring of fire” is expected to bring dangerous heat and thunderstorms this week. In California news, yesterday the CPUC published a report allowing SoCal Gas to commence injections at Aliso Canyon to 28% of its original capacity. SoCal Gas still needs to complete a leak survey and measure methane emissions at the site, which could take a few weeks.
August 2017 NYMEX crude oil futures are currently down $0.33 at $46.79/Bbl. Earlier today Brent crude futures broke through $50/Bbl for the first time since early June. As the US continues to contribute to inventory through shale production, market expectations are pricing will stay within $40-$60 for the next year, or possibly longer.
Natural gas inventories currently stand at 2,973 BCF which is 299 BCF less than from this same week last year and 141 BCF above the five-year average.