Natural Gas Storage Down by 118 Bcf

RELATED QUOTES

SymbolPriceChange
FST0.0000
KWK0.1460.000
WPX11.91+0.24

The U.S. Energy Department's weekly inventory release showed a smaller-than-expected decrease in natural gas supplies on account of mild temperatures across most parts of the country. Following the bearish draw, gas stocks continue to remain bloated, reflecting low demand amid robust onshore output.

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.

Analysis of the Data

Stockpiles held in underground storage in the lower 48 states fell by 118 billion cubic feet (Bcf) for the week ended Feb 01, 2013, lower than the guided range (of 122–126 Bcf drawdown) as per the analysts surveyed by Platts, the energy information arm of McGraw-Hill Companies Inc. (MHP).

The decrease represents the eleventh withdrawal of the 2012-2013 winter heating season after stocks hit an all-time high in early November last year. Though the draw was lower than the five-year (2008–2012) average reduction of 165 Bcf for the reported week, it exceeded last year’s withdrawal of 94 Bcf.

Following the past week’s reduction, the current storage level – at 2.684 trillion cubic feet (Tcf) – is down 226 Bcf (7.8%) from the last year but is still 351 Bcf (15.0%) above the five-year average.

In fact, natural gas inventories in underground storage have persistently exceeded the five-year average since late September 2011 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 couple of years or so, as production from dense rock formations (shale) – through novel techniques of horizontal drilling and hydraulic fracturing – remain robust, thereby overwhelming demand.

However, with the U.S. winter set to be colder than the unusually warm last one, we might expect some balancing of the commodity’s supply/demand disparity on the back of its more normalized use for space heating by residential/commercial consumers.

This, in turn, could improve the prices and buoy natural gas producers, particularly smaller players like Quicksilver Resources Inc. (KWK), WPX Energy Inc. (WPX) and Forest Oil Corp. (FST). With an improvement in the companies’ ability to generate positive earnings surprises, they can then move higher from their current Zacks Rank #3 (Hold).

Read the Full Research Report on MHP

Read the Full Research Report on FST

Read the Full Research Report on KWK

Read the Full Research Report on WPX

Zacks Investment Research



More From Zacks.com

--

Get stories like this on the Yahoo app and discover more every day.
Download it now.
Loading...
  • Asia markets track Wall St up, US jobs in focus
    Asia markets track Wall St up, US jobs in focus AFP News - 17 minutes ago

    Asian markets rose on Tuesday, with Tokyo recovering from initial losses as expectations of a US interest rate hike and talk of more Japanese monetary easing pushed the yen down against the dollar. Bets on a rate hike this year have soared after … More »

  • Exclusive: Six U.S. senators urge Obama to prioritize cyber crime at G20 summit
    Exclusive: Six U.S. senators urge Obama to prioritize cyber crime at G20 summit Reuters - 26 minutes ago

    Six U.S. senators have urged President Barack Obama to prioritize cyber crime at this weekend's Group of 20 summit in China, in the wake of the theft of $81 million from Bangladesh's central bank, according to a letter obtained by Reuters. The … More »

  • Why you should ignore Federal Reserve noise
    Why you should ignore Federal Reserve noise Truewealth Publishing - 30 minutes ago

    Over this past weekend, a group of old people met at a remote mountain resort in the middle of nowhere in the U.S. and talked about money. And judging from the way the financial media treated the event, it may well have been the Greek mythological … More »

  • Tokyo shares flat by break, soft data offsets weak yen AFP - 31 minutes ago

    Tokyo shares ended the morning session flat on Tuesday as tepid data and profit-taking from the previous day's rally offset a weaker yen and a rally on Wall Street The benchmark Nikkei 225 index ticked ... … More »

  • Gold holds overnight gains; U.S. data back in focus Reuters - 51 minutes ago

    Gold held steady early on Tuesday as bargain hunters swooped in after the metal fell to near five-week lows, while investors wait to see how U.S. nonfarm payroll data due later this week will play into the timing of any rate hike. * Spot gold was … More »

  • Oil down 1 percent, pressured by glut, dollar, Nigeria outlook
    Oil down 1 percent, pressured by glut, dollar, Nigeria outlook Reuters - 1 hour 0 minutes ago

    Oil prices settled down more than 1 percent on Monday, snapping two consecutive days of gains, on renewed concerns about an oil glut, a stronger dollar and expectations that Nigerian rebels will stop hampering that country's crude output. … More »

  • Wynn’s $4.2 Billion Macau Casino Is Seen Off to Slow Start (1) Bloomberg - 1 hour 8 minutes ago

    The part of the casino floor catering to mass market customers at the Wynn Palace “felt slow” relative to other recent openings, Union Gaming analyst Grant Govertsen said in a research note Monday. The new casino has led to a marginal increase in … More »

  • Yuan Bears Emerge From Hibernation as Fed Imperils G-20 Calm (2) Bloomberg - 1 hour 14 minutes ago

    Derivative markets are pointing to renewed bets on yuan depreciation, with a three-month measure of expected price swings poised for the biggest monthly increase since January. The increased pessimism comes after a period of calm that sent the … More »

  • Oil prices rise as dollar retreats from two-week high Reuters - 1 hour 19 minutes ago

    Oil futures edged up on Tuesday as the U.S. dollar erased earlier gains, but doubts that producers would be able to agree to an output freeze continued to drag on prices. International Brent crude oil futures (LCOc1) were trading at $49.34 per … More »

  • Volkswagen decides not to sue South Korea over sales ban
    Volkswagen decides not to sue South Korea over sales ban Reuters - 1 hour 40 minutes ago

    Volkswagen (VOWG_p.DE) decided against suing South Korea which last month suspended sales of most of its models and slapped a fine of 17.8 billion won (12.16 million pounds)on the German carmaker. Instead, Volkswagen will try to achieve … More »

  • China’s Credit Party Winds Down in Headwind for GDP Growth (1) Bloomberg - 1 hour 43 minutes ago

    The amount of local yuan bond sales minus maturities fell 39 percent in August from a year earlier for non-financial firms to 124 billion yuan ($18.6 billion), data compiled by Bloomberg show. China must balance cutting corporate debt, which more … More »

  • BOJ Needs Massive Shock & Awe, $2 Trillion Investor Says (1) Bloomberg - 1 hour 52 minutes ago

    “It is how much they do, and whether they can create that kind of shock and awe at this point in the cycle,” said Mark Haefele, global chief investment officer at UBS Wealth Management, in a Bloomberg Television interview, on Monday. “They could … More »

  • 5 Unheard Of Beach Destinations In Australia
    5 Unheard Of Beach Destinations In Australia GET.com - 2 hours 10 minutes ago

    Many of us Singaporeans dream of visiting the land down under, which is surrounded by the ocean and... … More »

  • Japan’s Household Spending and Unemployment Fall in July (1) Bloomberg - 2 hours 37 minutes ago

    Household spending fell 0.5 percent in July from a year earlier, the statistics bureau said on Tuesday (forecast -1.5 percent). Retail sales fell 0.2 percent from a year earlier (forecast -0.9 percent), according to a trade ministry report. The … More »

  • Asian Stocks Gain Amid U.S. Rebound While Japan Shares Retreat Bloomberg - 2 hours 48 minutes ago

    The MSCI Asia Pacific Index climbed 0.3 percent to 138.33 as of 9:16 a.m. in Tokyo. The index fell Monday after Federal Reserve Chair Janet Yellen indicated the case for an interest-rate hike is getting stronger. Investors are watching data … More »

  • Asia ex-Japan Stocks Advance After U.S. Rally as Oil Near $47 Bloomberg - 2 hours 51 minutes ago

    South Korea’s won strengthened and crude oil was little changed. The MSCI Asia Pacific Excluding Japan Index rose as equity benchmarks advanced in Australia, New Zealand and South Korea. Japanese shares retreated following their biggest jump in … More »

  • Tokyo shares open lower despite Wall Street gains AFP - 3 hours ago

    Tokyo shares opened modestly lower on Tuesday following a jump the previous day, despite a positive lead from Wall Street. The benchmark Nikkei 225 index fell 0.28 percent, or 46.51 points, to 16,690.98 ... … More »

  • EU to hand Apple Irish tax bill of over 1 billion euro, source says
    EU to hand Apple Irish tax bill of over 1 billion euro, source says Reuters - 3 hours ago

    The European Commission will rule against Ireland's tax dealings with Apple (AAPL.O) on Tuesday, two source familiar with the decision told Reuters, one of whom said Dublin would be told to recoup over 1 billion euros in back taxes. The Commission … More »

  • Why Do People File For Bankruptcy In Singapore?
    Why Do People File For Bankruptcy In Singapore? DollarsAndSense.sg - 3 hours ago

    Being a bankrupt does not mean you can default on all your debt The post Why Do People File For Bankruptcy In Singapore? appeared first on DollarsAndSense.sg. … More »

  • Mondelez abandons pursuit of U.S. chocolate maker Hershey
    Mondelez abandons pursuit of U.S. chocolate maker Hershey Reuters - 3 hours ago

    The abandoned deal, which would have created the world's largest confectioner, underscores the grip that a charitable trust has on the maker of Hershey's Kisses and Reese's Peanut Butter Cups. The trust which controls Hershey was set up by the … More »

  • Traders Said to Discuss Data Superhighway From Chicago to Japan Bloomberg - 4 hours ago

    The project, dubbed “Go West,” would install a line of microwave towers from the Chicago area to the U.S. west coast, possibly ending near Seattle, and then connect to an undersea cable that stretches to Asia, according to the people, who asked not … More »

  • US alarm as Turkey warns Syrian Kurd militia of more strikes
    US alarm as Turkey warns Syrian Kurd militia of more strikes AFP News - 4 hours ago

    Turkey warned Monday it would carry out more strikes on a US-backed Kurdish militia in Syria if it fails to retreat, as Washington said President Barack Obama will meet his Turkish counterpart over the weekend. Turkish forces pressed on with a … More »

  • Shell restarts gasoline-producing unit at Puget Sound refinery Reuters - 4 hours ago

    HOUSTON (Reuters) - Shell (RDSa.L) restarted a fluid catalytic cracking unit (FCCU) at its Puget Sound, Washington refinery on Aug. 23, according to a regulatory filing published on Monday. The unit was ... … More »

  • Business Highlights Associated Press - 5 hours ago

    ___ Mylan launching cheaper, generic version of EpiPen The maker of EpiPens will start selling a cheaper, generic version of the emergency allergy shots as the furor over repeated U.S. price hikes continues ... … More »

  • Island Standoff Again Clouds China-Japan Ties in Run-Up to G-20 Bloomberg - 5 hours ago

    One of the reasons China may be escalating its activity in the East China Sea is to warn Japan against getting involved in the South China Sea spat. While not a claimant in those waters, Japan has drawn China’s ire for supporting Southeast Asian … 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
    0.123-0.001-0.81%
    N21.SI
    0.3550.0000.00%
    E5H.SI
    0.32+0.01+3.23%
    5OT.SI
    0.49+0.02+3.16%
    588.SI
    0.990.000.00%
    H64.SI
  • % Gainers
    % Gainers
    NamePriceChange% Chg
    0.485+0.050+11.49%
    IX2.SI
    0.17+0.02+9.68%
    M11.SI
    1.115+0.065+6.19%
    A23.SI
    0.27+0.02+5.88%
    E28.SI
    0.375+0.020+5.63%
    BAZ.SI
  • % Losers
    % Losers
    NamePriceChange% Chg
    0.11-0.04-26.67%
    5TI.SI
    0.18-0.02-10.00%
    A04.SI
    0.183+0.003+1.67%
    BOU.SI
    0.20-0.01-4.76%
    K22.SI
    0.57-0.02-3.39%
    BMH.SI

Market Data

  • Currencies
    Currencies
    NamePriceChange% Chg
    1.3613+0.002+0.15%
    USDSGD=X
    1.5204-0.0002-0.01%
    EURSGD=X
    1.7809-0.0006-0.03%
    GBPSGD=X
    75.0270+0.11+0.15%
    SGDJPY=X
    5.6960-0.0064-0.11%
    SGDHKD=X
    2.9752-0.00010.00%
    SGDMYR=X
    9,740.8574-11.6465-0.12%
    SGDIDR=X
    4.9051-0.0092-0.19%
    SGDCNY=X
    1.0274-0.0025-0.24%
    AUDSGD=X
  • Commodities
    Commodities
    NamePriceChange% Chg
    1,326.70-0.40-0.03%
    GCZ16.CMX
    18.75-0.02-0.10%
    SIU16.CMX
    96.93+1.14+1.19%
    ^XAU
    2.09+0.01+0.60%
    HGU16.CMX
    47.09+0.11+0.23%
    CLV16.NYM
  • Bonds
    Bonds
    TreasuryYield (%)Yield Change
    1.18-0.06
    ^FVX
    1.57-0.07
    ^TNX
    2.22-0.08
    ^TYX