US natural gas prices climbed to $3.16 per MMBtu after the latest EIA report showed a slightly smaller-than-expected storage build. Energy companies injected 73 billion cubic feet (bcf) of gas into storage for the week ended June 12, below market expectations for a 75 bcf increase. That compares with a 97 bcf injection in the same week a year earlier and is in line with the five-year average for this period.
Total inventories rose to 2.759 trillion cubic feet, about 1% below the level seen a year ago but 5.8% above the five-year average. The pace of injections also eased from the prior week’s 108 bcf build.
Weather forecasts calling for warmer-than-normal temperatures through July 3 are expected to bolster demand from power generators as air conditioning use rises. At the same time, average gas flows to the nine major US LNG export facilities held steady at 17.1 bcfd in June, unchanged from May amid ongoing maintenance. Production in the US Lower 48 states has edged down slightly, averaging 109.4 bcfd so far in June compared with 109.7 bcfd in May.
