The U.S. Energy Information Administration (EIA) reported on Thursday that natural gas storage inventories increased by 15 Bcf for the week ending April 3, 2015. The median estimate of industry analysts for the injection was 11 Bcf with a range of 7 Bcf to 16 Bcf.
Natural gas prices for May ’15 futures collapsed after the report’s release.
The EIA also reported that total stocks of natural gas (1,476 Bcf) were still higher than one year ago (825 Bcf) and remained below the 5-year average (1,649 Bcf).
Now that injection season is likely in full swing, traders and investors will focus on the pace of production as inventories build. In first nine days of the second quarter of 2015, production has remained flat at around 72.4 Bcf per day.
In order for storage levels to reach 3,800 Bcf by the first week of November 2015, production will have to average almost 84 Bcf per day from last week’s storage level of 1,461 Bcf.
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