Natural Gas Inventories Rise but Heat Wave Could Fuel Strong Demand
Julianne Geiger is a veteran editor, writer and researcher for Oilprice.com, and a member of the Creative Professionals Networking Group.
U.S. natural gas inventories climbed by 46 billion cubic feet (Bcf) last week, keeping total storage comfortably above seasonal norms. But while the headline number suggests plenty of supply, traders aren’t relaxing just yet — not with record-breaking heat and LNG exports tightening balances beneath the surface.
The build for the week ending July 11 brings total working gas in storage to 3,052 Bcf, according to today’s figures provided by the Energy Information Administration. That’s 178 Bcf above the five-year average of 2,874 Bcf, but 156 Bcf below the unusually high levels seen at this time last year.
Despite that year-over-year gap, the current surplus to the five-year average offers a buffer — for now. But with power burns rising and demand from LNG terminals holding steady, the market is watching closely for signs that storage builds could start slipping behind pace.
