The U.S. Energy Information Administration (EIA) reported on Thursday that natural gas storage inventories increased by 91 Bcf for the week ending July 3, 2015. The median estimate for the injection was 85 Bcf.
Natural gas prices for August ’15 delivery were down after the report’s release as they dropped to $2.66 per mmBtu.
The EIA also reported that total stocks of natural gas (2,668 Bcf) were still higher than one year ago (2,009 Bcf) and remained above the five-year average (2,623 Bcf).
“This is a big miss,” said Steve Kingston, a reporter for NatGasInvestor.com.
“The 2015 low of $2.50 is now firmly again on the table. With the forecasts showing cooler temperatures in July, it will be hard for the market to find a reason to rally.”
Baker Hughes is set to report its rig count on Friday, another data point for the market to consider. Last week, Baker Hughes reported that natural gas rigs decreased by nine rigs to a total of 219 rigs, the largest drop in 12 weeks.
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