Natural Gas Supply Up 73 BCF
July 7th, 2006 by Grant in: Oil & GasNatural gas inventories rose 73 bcf for the week ending June 30, 2006 according to the energy department. Total inventory in storage is just over 2.6 tcf, and up 425 bcf over year ago inventory.
Natural gas futures are currently down $0.09 on the news.
Commentary
The increase in supply was not unexpected, as most predicted an increase between 65 and 75 bcf. As for stocks, it means that we should see a further decline in price as supply continues to increase and demand remains flat. We have yet to see increases in demand due to gas fed power plants coming on line due to increase in summer temperatures.
In my opinion, natural gas stock plays will remain dormant until the middle of August or early October.
Resources
Natural Gas Chart
Energy Information Administration: Natural Gas
Short Term Energy Outlook: Forecast & Analysis
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