Natural Gas Stockpiles Shrink

RELATED QUOTES

SymbolPriceChange
DVN41.58+3.20
CHK6.75+0.52
HAL42.79+1.84
PTEN20.39+1.57

The U.S. Energy Department's weekly inventory release showed a larger-than-expected decrease in natural gas supplies on account of the advent of cold weather that prompted  the commodity’s brisk use for space heating by residential/commercial consumers. The storage withdrawal – the second for the winter heating season – has also cut the surplus relative to the last year and the five-year average.

About the Weekly Natural Gas Storage Report

The Weekly Natural Gas Storage Report – brought out by the Energy Information Administration (EIA) every Thursday since 2002 – includes updates on natural gas market prices, the latest storage level estimates, recent weather data and other market activities or events.

The report provides an overview of the level of reserves and their movements, thereby helping investors understand the demand/supply dynamics of natural gas.

It is an indicator of current gas prices and volatility that affect businesses of natural gas-weighted companies and related support plays like Anadarko Petroleum Corp. (APC), Chesapeake Energy (CHK), Encana Corp. (ECA), Devon Energy Corp. (DVN), Nabors Industries (NBR), Patterson-UTI Energy (PTEN), Helmerich & Payne (HP) and Halliburton Company (HAL).

Analysis of the Data

Stockpiles held in underground storage in the lower 48 states fell by 38 billion cubic feet (Bcf) for the week ended November 16, 2012, higher than the guided range (of 23–27 Bcf gain) as per the analysts surveyed by Platts, the energy information arm of McGraw-Hill Companies Inc. (MHP).

The decrease represents the second withdrawal of the 2012-2013 winter heating season after stocks hit an all-time high in early November. More importantly, the weekly storage draw has trimmed the surplus relative to the benchmarks.

But in spite of the ‘better-than-expected’ draw during the past week, the current storage level – at 3.873 trillion cubic feet (Tcf) – is up 24 Bcf (0.6%) from the last year and 168 Bcf (4.5%) over the five-year average.

In fact, natural gas inventories in underground storage have persistently exceeded the five-year average since late September last year and ended the usual summer stock-building season of April through October at a record 3.923 Tcf (as of October 31, 2012).

A supply glut kept the natural gas prices under pressure during the past year or so, as production from dense rock formations (shale) – through novel techniques of horizontal drilling and hydraulic fracturing – remains robust, thereby overwhelming demand.

However, with the upcoming U.S. winter set to be colder than the unusually warm last one and domestic output likely to drop in 2013 versus 2012 on the back of natural gas players announcing drilling/volume curtailments, we might expect some balancing of the commodity’s supply/demand disparity.

This, in turn, could improve the prices and buoy natural gas producers like Ultra Petroleum Corp. (UPL), Talisman Energy Inc. (TLM), Encana and Chesapeake.

Zacks Rank

Among the natural gas-associated companies mentioned above, Halliburton retains a Zacks #4 Rank, which translates into a short-term Sell rating.

The other names are all Zacks #3 Rank (Hold) stocks, implying that these are expected to perform in line with the broader U.S. equity market over the next one to three months.

Read the Full Research Report on DVN

Read the Full Research Report on MHP

Read the Full Research Report on CHK

Read the Full Research Report on HAL

Read the Full Research Report on PTEN

Read the Full Research Report on TLM

Read the Full Research Report on ECA

Read the Full Research Report on APC

Read the Full Research Report on HP

Read the Full Research Report on UPL

Read the Full Research Report on NBR

Zacks Investment Research



More From Zacks.com

--

Get stories like this on the Yahoo app and discover more every day.
Download it now.
Loading...
  • UBS CEO says clients remained risk averse in third quarter Reuters - 11 minutes ago

    ZURICH (Reuters) - UBS (UBSG.S) Chief Executive Sergio Ermotti said on Thursday political uncertainty and concerns over global growth meant clients remained cautious about the market in the third quarter. ... … More »

  • Chinatown shophouses for sale at $23 mil
    Chinatown shophouses for sale at $23 mil The Edge Property - 15 minutes ago

    A pair of shophouses at 22 and 23 Mosque Street have been put up for sale by expression of interest. The indicative guide price for 22 and 23 Mosque Street is in the region of $23 million, which translates to about $2,950 psf on the existing gross … More »

  • From robots to websites, British firms curb spending due to Brexit Reuters - 19 minutes ago

    Heavy machinery whirrs and clanks on the factory floor of precision metalworking firm Robert Bion & Co, where a planned three-metre robotic arm would have been speeding up output by now, if Britain had not voted to leave the European Union. "We're … More »

  • Bank of Finland cuts Europe growth forecasts on Brexit, Italy problems Reuters - 20 minutes ago

    Finland's central bank cut on Thursday its forecast for economic growth in Europe for next year, citing impacts from Britain's vote to leave the EU as well as weakened economic prospects in Italy. The Bank of Finland slightly lifted its 2016 growth … More »

  • Planned global banking rules not balanced, need changes - EU's Dombrovskis
    Planned global banking rules not balanced, need changes - EU's Dombrovskis Reuters - 39 minutes ago

    A planned reform of global banking rules being discussed by the United States, Europe, Japan and other major economies risks negatively affecting European banks and needs to be changed, the EU financial services commissioner said on Thursday. The … More »

  • Mount Anvil to preview Hampstead Manor in Singapore
    Mount Anvil to preview Hampstead Manor in Singapore The Edge Property - 40 minutes ago

    Award-winning London developer Mount Anvil will launch for sale its latest development, Hampstead Manor, in Singapore at the Four Seasons Hotel over the weekend of Oct 1 and 2. Knight Frank has been appointed the marketing agent for the project. … More »

  • Bugis Point on the market for $59.5 mil
    Bugis Point on the market for $59.5 mil The Edge Property - 45 minutes ago

    Bugis Point, a six-storey commercial building at 530 North Bridge Road, has been put up for sale by public tender. According to CBRE, the appointed marketing agent, the property has a guide price of $59.5 million. Bugis Point is located directly … More »

  • Billionaire Li Takes Long-Term Bet on Newly Listed Postal Bank Bloomberg - 46 minutes ago

    The chairman of CK Hutchison Holdings Ltd., his three charitable foundations and his son Victor Li, hold a combined 11.62 percent of H-shares in the Chinese lender, according to an e-mailed statement Thursday. Postal Bank raised $7.4 billion in its … More »

  • Amoy Street shophouses up for sale
    Amoy Street shophouses up for sale The Edge Property - 51 minutes ago

    Adjoining shophouses at 77, 78, 79 and 80 Amoy Street have been put up for sale by public tender. According to CBRE, the properties have a guide price of $64.3 million, or $2,700 psf, based on the gross floor area. This is the second time CBRE has … More »

  • Gold pares gains as dollar recovers, equities rally
    Gold pares gains as dollar recovers, equities rally Reuters - 55 minutes ago

    Gold pared early gains on Thursday as the U.S. dollar recovered and global stocks rallied after oil producers agreed to curb output. The Organization of Petroleum Exporting Countries on Wednesday agreed modest oil output cuts in the first such deal … More »

  • Cash freeze squeezes Italy migrant centres to bursting point
    Cash freeze squeezes Italy migrant centres to bursting point AFP News - 56 minutes ago

    A steady flow of migrants arriving in the south has combined with the de facto closure of borders to the north to leave Italy's migrant reception centres bursting at the seams. Neither Renzi's office nor the finance ministry responded to an … More »

  • Expert panel warns Tokyo Olympics cost could top $30 billion
    Expert panel warns Tokyo Olympics cost could top $30 billion Associated Press - 58 minutes ago

    An expert panel commissioned by Japan's capital city has warned that the total cost for the Tokyo 2020 Olympics could exceed 3 trillion yen ($30 billion) unless drastic cost-cutting measures are taken. ... … More »

  • Did landmark laws from Congress enable high drug prices?
    Did landmark laws from Congress enable high drug prices? Associated Press - 58 minutes ago

    Lawmakers are venting outrage over high prescription drug costs, but if Congress is looking for culprits, it might want to look in the mirror. Republican- and Democratic-controlled Congresses, and presidents ... … More »

  • Three residential buildings near Orchard Road, two The Claymore units up for sale
    Three residential buildings near Orchard Road, two The Claymore units up for sale The Edge Property - 59 minutes ago

    A group of investment holding companies has placed three residential properties near Orchard Road up for sale by public tender. The three properties are 3 Cuscaden Walk, 120 Grange Road and 8 Hullet Road. Completed in the early 1990s, 3 Cuscaden … More »

  • China’s Big Ball of Money Isn’t Going Anywhere Near Stocks (2) Bloomberg - 1 hour 1 minute ago

    The Shanghai Composite Index will end the year at 3,075, according to the median forecast in a Bloomberg poll of 10 strategists and fund managers. That implies a 13 percent drop over the 12-month period, the steepest in five years, and a gain of 2.9 … More »

  • Asia stocks rally, energy firms soar on OPEC deal
    Asia stocks rally, energy firms soar on OPEC deal AFP News - 1 hour 6 minutes ago

    Energy firms led a rally in Asian stock markets Thursday, while high-yielding currencies advanced after OPEC's shock agreement to cut oil output sent crude prices soaring. The gains come after OPEC's "historic" announcement late Wednesday of a deal … More »

  • Governor to approve state-run retirement for private workers
    Governor to approve state-run retirement for private workers Associated Press - 1 hour 7 minutes ago

    Gov. Jerry Brown is scheduled to sign legislation Thursday to automatically enroll nearly 7 million people in a retirement savings account, an attempt to address growing fears that many workers will be ... … More »

  • Bridging the Gap: Hainan summit presents opportunity for Southeast Asian startups to test China
    Bridging the Gap: Hainan summit presents opportunity for Southeast Asian startups to test China e27 - 1 hour 8 minutes ago

    The event takes at Clear Water Bay on the island of Hainan and registration closes tomorrow   It is common knowledge in the startup world that the Chinese tech ecosystem is leading the East Asian region and has risen to rival that of Silicon Valley. … More »

  • TI Fluid Systems to raise 600 million euros in London debut Reuters - 1 hour 9 minutes ago

    The company said the offer would include a partial sale of shares held by funds advised by Bain Capital Private Equity, LP, members of the management team and other individual shareholders. TI Fluid said it would use the net primary proceeds to … More »

  • Gift Ideas for #TeamOffice
    Gift Ideas for #TeamOffice MoneyMax.ph - 1 hour 10 minutes ago

    Office Holiday parties are an eventuality, really. Some will go the Secret Santa route and exchange only one gift on the day of the party itself, with everyone’s code names and wish lists up on the bulletin board, or sent around via e-mail. Some … More »

  • Senior German lawmaker says no more aid for ailing banks Reuters - 1 hour 10 minutes ago

    Germany will not grant any more state aid for ailing banks, a senior lawmaker in Chancellor Angela Merkel's conservative bloc said on Thursday, a day after the government denied it was working on a rescue plan for Deutsche Bank, its biggest lender. … More »

  • European stocks rally at open after OPEC deal AFP - 1 hour 11 minutes ago

    Europe's main stock markets rallied at the start of trading on Thursday as energy share prices surged following OPEC's surprise deal to cut oil output. London's benchmark FTSE 100 index jumped 1.0 percent ... … More »

  • Cellphones spill into Yellowstone's wilds despite park plan
    Cellphones spill into Yellowstone's wilds despite park plan Associated Press - 1 hour 13 minutes ago

    Adventure seekers encounter untamed wilderness when they enter the backcountry of Yellowstone National Park. Howling wolves. Deadly grizzly bears. Steam-spewing geysers as seen nowhere else on earth. A ... … More »

  • Insight: From robots to websites, British firms curb spending due to Brexit Reuters - 1 hour 16 minutes ago

    Heavy machinery whirrs and clanks on the factory floor of precision metalworking firm Robert Bion & Co, where a planned three-meter robotic arm would have been speeding up output by now, if Britain had not voted to leave the European Union. "We're … More »

  • Oil prices retreat as investors wait for clarity on OPEC deal
    Oil prices retreat as investors wait for clarity on OPEC deal Reuters - 1 hour 21 minutes ago

    Oil futures retreated on Thursday as the market grew more sceptical on how OPEC would implement a plan to curb oil output a day after the group agreed to limit production. Benchmark prices had initially extended gains made in the previous session … More »

 
Recent Quotes
Symbol Price Change % Chg 
Your most recently viewed tickers will automatically show up here if you type a ticker in the "Enter symbol/company" at the bottom of this module.
You need to enable your browser cookies to view your most recent quotes.
 
Sign-in to view quotes in your portfolios.

MARKET MOVERS

  • Most Actives
    Most Actives
    NamePriceChange% Chg
    0.157+0.006+3.97%
    N21.SI
    0.114+0.005+4.59%
    40E.SI
    0.295+0.020+7.27%
    5ME.SI
    0.133+0.011+9.02%
    A50.SI
    0.106+0.001+0.95%
    40F.SI
  • % Gainers
    % Gainers
    NamePriceChange% Chg
    0.35+0.05+16.67%
    AYV.SI
    0.13+0.02+16.07%
    BEH.SI
    0.119+0.015+14.42%
    A7S.SI
    0.395+0.045+12.86%
    BQF.SI
    0.182+0.020+12.35%
    BGO.SI
  • % Losers
    % Losers
    NamePriceChange% Chg
    0.178-0.020-10.10%
    M14.SI
    0.21-0.02-8.70%
    BXE.SI
    0.154-0.013-7.78%
    5WJ.SI
    0.16-0.01-5.88%
    5G1.SI
    0.185-0.011-5.61%
    B7K.SI

Market Data

  • Currencies
    Currencies
    NamePriceChange% Chg
    1.3631+0.0042+0.31%
    USDSGD=X
    1.5302+0.0063+0.41%
    EURSGD=X
    1.7736+0.0053+0.30%
    GBPSGD=X
    74.4100+0.298+0.40%
    SGDJPY=X
    5.6865-0.0176-0.31%
    SGDHKD=X
    3.0174-0.0142-0.47%
    SGDMYR=X
    9,512.1279-49.4746-0.52%
    SGDIDR=X
    4.8926-0.0176-0.36%
    SGDCNY=X
    1.0460+0.0014+0.13%
    AUDSGD=X
  • Commodities
    Commodities
    NamePriceChange% Chg
    1,325.30+1.60+0.12%
    GCZ16.CMX
    19.22+0.09+0.49%
    SIZ16.CMX
    95.67+2.69+2.89%
    ^XAU
    2.190.00-0.09%
    HGZ16.CMX
    43.85+0.41+0.94%
    CLV16.NYM
  • Bonds
    Bonds
    TreasuryYield (%)Yield Change
    1.13+0.02
    ^FVX
    1.57+0.01
    ^TNX
    2.29+0.01
    ^TYX