Natural gas storage deficit narrows

The US Energy Information Administration reports a fall in natural gas stocks despite high growth in supply

Natural gas storage deficit narrows

World Bulletin/News Desk

Natural gas stocks in America have risen as supplies grow at a rate above the five-year average, the U.S. Energy Information Administration reported.

U.S. natural gas storage injections have continued to outpace the average for 2009 to 2013 over the summer, with stocks at 2.8 billion cubic feet as of September 5, the administration said in the Weekly Natural Gas Storage Report.

High levels of natural gas injection reduce pressure on prices in winter, when demand peaks. This affects consumers in both the U.S. and countries that import U.S. gas.

Stocks in March were almost 1 trillion cubic feet below the five-year average due to a particularly cold winter, producing the lowest March figures since 2003.

By the beginning of September, the deficit was reduced to 463 billion cubic feet by relatively higher net injections.

The administration’s latest short-term outlook expects this trend to continue and forecasts stocks of 3.5 billion cubic feet by the end of October, still below the five-year average and the lowest end-October in five years.

The report noted: "Strong domestic production growth and mild demand have supported strong injections through the summer. Mild weather reduced natural gas use for electric generation. Natural gas prices have also fallen during [the] injection season."

 

Last Mod: 14 Eylül 2014, 13:37
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