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POLL-U.S. natural gas stockpiles seen up 43 bcf in week to July 23

Credit: REUTERS/ANGUS MORDANT

U.S. utilities likely injected a larger-than-normal 43 billion cubic feet (bcf) of natural gas into storage last week, a Reuters poll showed on Wednesday.

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July 28 (Reuters) - U.S. utilities likely injected a larger-than-normal 43 billion cubic feet (bcf) of natural gas into storage last week, a Reuters poll showed on Wednesday.

That compares with a build of 27 bcf during the same week a year ago and a five-year (2016-2020) average injection of 28 bcf.

In the week prior to July 16, utilities injected 49 bcf of gas into storage USOILN=ECI.

If analysts are on target, the injection during the week ended July 23 would take stockpiles to 2.721 trillion cubic feet (tcf), 5.6% below the five-year average and 15.9% below the same week a year ago.

The U.S. Energy Information Administration (EIA) will release its weekly storage report at 10:30 a.m. EDT (1430 GMT) on Thursday.

One reason storage injections have been bigger-than-normal in recent weeks is that U.S. gas production has mostly remained at record levels for this time of year during May, June and July.

Even though total output in 2021 is expected to average 92.6 billion cubic feet per day (bcfd), which would fall short of 2019's annual record 93.06 bcfd, output so far in July has averaged 91.5 bcfd. That July average compares with 89.0 bcfd during July 2020 and 90.5 bcfd in July 2019, according to Refinitiv data.

Temperatures were slightly less warm for this time of year with 87 cooling degree days (CDDs) compared with a 30-year average of 90 CDDs for the period.

CDDs, which are used to estimate demand to cool homes and businesses, measure the number of degrees a day's average temperature is above 65 degrees Fahrenheit (18 degrees Celsius).

Reuters polled 17 analysts, whose estimates ranged from a build of 33 bcf to 52 bcf, with a median injection of 42 bcf.

Early estimates for the week ending July 30 ranged from an addition of 18 bcf to 41 bcf, with a mean increase of 28 bcf.

That compares with an injection of 32 bcf during the same week last year and a five-year average build of 30 bcf.

Following is a list of the poll's participants; all figures are in billions of cubic feet:

Organization

Forecasts (in bcf)

C H Guernsey

52

Natural Gas Intelligence

49

SMC Report

49

DTN

47

Schneider Electric

47

Engie Insight

45

Gelber & Associates

44

Energy Ventures Analysis

43

Baker & O'Brien Inc

42

Price Futures Group

41

Stone X Group Inc

40

Ritterbusch Associates

40

Tradition Energy

39

Macquarie Group

38

Refinitiv

38

Energy Aspects

37

IHS Markit

33

(Reporting by Swati Verma in Bengaluru; editing by Scott DiSavino and Steve Orlofsky)

((Swati.Verma@thomsonreuters.com; within U.S. +1 646 223 8780 , outside U.S. +9180 6182 2831/3590; Reuters Messaging: swati.verma.thomsonreuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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