Season's First Natural Gas Drawdown

RELATED QUOTES

SymbolPriceChange
DVN44.96+0.53
CHK6.445+0.045
HAL44.7231+0.1631
PTEN20.47-0.09

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 first 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 18 billion cubic feet (Bcf) for the week ended November 9, 2012, higher than the guided range (of 10–14 Bcf gain) as per the analysts surveyed by Platts, the energy information arm of McGraw-Hill Companies Inc. (MHP).

The decrease represents the first withdrawal of the 2012-2013 winter heating season after stocks hit an all-time high in the previous week. More importantly, during this time last year and over the five-year (2007–2011) period, natural gas was still being added into supplies at the respective rates of 20 Bcf and 17 Bcf. Therefore, 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 3.911 trillion cubic feet (Tcf) – is up 71 Bcf (1.8%) from the last year and 209 Bcf (5.6%) 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.

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...
  • Oil falls on bullish Fed talk and rising dollar AFP - 8 minutes ago

    Oil prices fell on Monday as the dollar rose following relatively bullish talk from the US Federal Reserve. In an address on Friday, US Fed Chair Janet Yellen said there was growing justification for a ... … More »

  • Oil down on glut, dollar; Nigeria rebels add to bearish outlook
    Oil down on glut, dollar; Nigeria rebels add to bearish outlook Reuters - 17 minutes ago

    Oil prices settled down more than 1 percent on Monday, snapping two consecutive days of gains, on caution over galloping Middle East crude output and a firmer dollar boosted by speculation of a U.S. rate hike by year-end. A pledge by Nigerian … More »

  • Grain lower, livestock mixed Associated Press - 19 minutes ago

    Grain futures were lower Monday on the Chicago Board of Trade. Wheat for Sept. declined 13 cents at $3.7050 a bushel; Sept. corn lost 4.50 cents to 3.1175 a bushel; Sept. oats was off 7 cents at $1.62 ... … More »

  • Gold turns up from near five-week low as dollar eases
    Gold turns up from near five-week low as dollar eases Reuters - 38 minutes ago

    NEW YORK/LONDON (Reuters) - Gold rebounded from a near five-week low as the dollar dropped on Monday, shrugging off earlier pressure by top Federal Reserve officials' comments fuelling speculation that U.S. interest rates would rise sooner rather … 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 - 44 minutes ago

    The European Commission will rule against Ireland's tax dealings with Apple 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 declined … More »

  • China’s Credit Party Winds Down in Headwind for Economic Growth Bloomberg - 57 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 »

  • U.S. Stocks Approach Record High on Economic Data; Oil Slumps Bloomberg - 58 minutes ago

    Brazil’s Ibovespa extended the world’s biggest gain this year on speculation President Dilma Rousseff will be permanently removed from office. The monthly jobs report due this Friday may provide more clues on whether policy makers will have room to … More »

  • Estonia fails to elect president in first round
    Estonia fails to elect president in first round AFP News - 1 hour 16 minutes ago

    Estonia's parliament failed to elect a president Monday after none of the contenders for the largely ceremonial role received the necessary two-thirds majority of votes in round one of the race. The presidential election in the small Baltic state, … More »

  • Copper Drops to Lowest in Two Months on Ample Supply, China Woes Bloomberg - 1 hour 47 minutes ago

    Inventories tracked by exchanges in Shanghai, London and New York climbed five straight days last week to the highest since May. Barclays said in a report that a recent slump in the copper market “may be an early warning sign of weakening in China’s … More »

  • U.S. assets gain, European shares dip on Fed rate hike bets
    U.S. assets gain, European shares dip on Fed rate hike bets Reuters - 1 hour 50 minutes ago

    U.S. stock markets and the dollar climbed on Monday while European share markets fell, following comments by top Federal Reserve officials that bolstered expectations for an interest rate hike by the U.S. central bank this year. Fed Chair Janet … More »

  • Yale grad students file petition seeking union certification Associated Press - 2 hours 9 minutes ago

    Yale University graduate students on Monday petitioned the National Labor Relations Board for union recognition, saying they have organized to address concerns surrounding pay and benefits and give themselves ... … More »

  • South African Treasury, Eskom row over coal contracts as government rifts deepen Reuters - 2 hours 21 minutes ago

    South Africa's Treasury and state-owned Eskom clashed on Monday over a probe into coal contracts between the power utility and a company linked to the wealthy Gupta family that is accused of holding undue political sway over President Jacob Zuma. … More »

  • European privacy regulators to scrutinise WhatsApp privacy switch Reuters - 2 hours 25 minutes ago

    Facebook's move to relax the privacy policy of WhatsApp, the world's most popular mobile messaging application, will be closely scrutinised, the chair of Europe's leading group of privacy regulators said on Monday.     WhatsApp, which counts more … 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 - 2 hours 30 minutes ago

    Turkey warned Monday it would carry out more strikes on a Syrian Kurdish militia if it failed to retreat beyond the Euphrates River, as Washington voiced alarm over weekend clashes. Turkish forces pressed on with a two-pronged operation inside … More »

  • Berlin to require mums to come clean on 'milkmen's kids'
    Berlin to require mums to come clean on 'milkmen's kids' AFP News - 2 hours 48 minutes ago

    Germany has drafted a law requiring mothers to inform their partners if their children were fathered by another man, Justice Minister Heiko Maas said on Monday. It would apply to cases in which men who believe they are not the real fathers seek … More »

  • RUBBER-Tokyo futures prices after evening session Aug 29 Reuters - 3 hours ago

    Following are prices for Tokyo rubber futures at the end of the Tokyo market's evening session on Aug 2016. Contract Day Volume Evening Volume * Sep 156.0 25 - - * Oct 156.0 86 156.0 1 * Nov 153.8 75 153.6 ... … More »

  • Four Nomura Investment Bankers Said to Leave as Firm Shrinks Bloomberg - 3 hours ago

    Jason Fertig, who led Nomura’s health-care investment-banking group in the Americas, and Matthew Upton, a banker in the firm’s global-technology team, are joining Mizuho Financial Group Inc., the people said, asking not to be identified discussing … More »

  • Markets Right Now: Banks lead US stocks higher on rate hopes Associated Press - 3 hours ago

    The latest on developments in global financial markets (all times local): 11:45 a.m. Banks are leading stocks higher at midday as investors hope for higher interest rates. Wells Fargo, the nation's largest ... … More »

  • JPMorgan Index Move Puts $370 Billion Islamic Debt on Fund Radar Bloomberg - 3 hours ago

    Shariah-compliant notes will be eligible for inclusion in five JPMorgan gauges from Oct. 31 and will account for between 0.35 percent to 0.99 percent of total assets on the benchmarks, according to an Aug. 18 statement by the bank. Sukuk will be … More »

  • Yuan Bears Emerge From Hibernation as Fed Threatens G-20 Calm Bloomberg - 3 hours 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 »

  • Statoil expects 'loads of' M&A deals coming up, strategy chief says
    Statoil expects 'loads of' M&A deals coming up, strategy chief says Reuters - 4 hours ago

    ** Says: "If you look at the acquisition and divestment markets for upstream oil and gas on a global basis over the last five years, they have been falling to all-time lows... but there are a number of active spots, one of those is in certain parts … More »

  • Liz Weston: 5 money myths you probably believe
    Liz Weston: 5 money myths you probably believe Associated Press - 4 hours ago

    Managing money can be complicated, and myths are often born from people's struggles to make it simpler. But simplistic solutions can cost you instead of saving you money. If you believe any of these five ... … More »

  • BOJ Needs Massive Move to Shock & Awe, $2 Trillion Investor Says Bloomberg - 4 hours 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 »

  • Singapore's GIC buys stake in Vietnam's bank AFP News - 5 hours ago

    Singapore sovereign wealth fund GIC will buy a 7.7 percent stake in Vietnam's biggest bank, both companies said in a joint statement on Monday. GIC signed a memorandum of agreement to buy 305.8 million new shares of Vietcombank, the fund's first … More »

  • Wall St rises as hawkish Fed boosts financial stocks
    Wall St rises as hawkish Fed boosts financial stocks Reuters - 5 hours ago

    Yellen, addressing a gathering of global central bankers on Friday, said the central bank was close to meeting its goals of maximum employment and stable prices, while describing consumer spending as "solid". Yellen gave little indication of when … 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
    0.124-0.005-3.88%
    N21.SI
    0.735-0.020-2.65%
    G13.SI
    0.128+0.014+12.28%
    RE4.SI
    0.3550.0000.00%
    E5H.SI
    4.12-0.10-2.37%
    Z74.SI
  • % Gainers
    % Gainers
    NamePriceChange% Chg
    0.355+0.115+47.92%
    BAZ.SI
    0.151+0.024+18.90%
    D79.SI
    0.23+0.03+15.00%
    AWI.SI
    0.475+0.060+14.46%
    588.SI
    0.128+0.014+12.28%
    RE4.SI
  • % Losers
    % Losers
    NamePriceChange% Chg
    0.205-0.105-33.87%
    BCZ.SI
    0.25-0.10-28.57%
    BKX.SI
    0.13-0.05-27.78%
    AYL.SI
    0.165-0.055-25.00%
    BKZ.SI
    0.745-0.130-14.86%
    564.SI

Market Data

  • Currencies
    Currencies
    NamePriceChange% Chg
    1.3595+0.0012+0.09%
    USDSGD=X
    1.5204+0.0008+0.05%
    EURSGD=X
    1.7805-0.0004-0.02%
    GBPSGD=X
    74.9740+0.292+0.39%
    SGDJPY=X
    5.7030-0.0017-0.03%
    SGDHKD=X
    2.9772+0.0109+0.37%
    SGDMYR=X
    9,759.0078+10.8193+0.11%
    SGDIDR=X
    4.9125+0.0063+0.13%
    SGDCNY=X
    1.0294+0.0031+0.30%
    AUDSGD=X
  • Commodities
    Commodities
    NamePriceChange% Chg
    1,326.10+0.20+0.02%
    GCZ16.CMX
    18.82+0.16+0.88%
    SIU16.CMX
    96.91+1.12+1.16%
    ^XAU
    2.080.00+0.12%
    HGU16.CMX
    46.99-0.65-1.36%
    CLV16.NYM
  • Bonds
    Bonds
    TreasuryYield (%)Yield Change
    1.18-0.06
    ^FVX
    1.57-0.07
    ^TNX
    2.22-0.08
    ^TYX