Natural Gas Reacts To Weekly Inventories Data

Natural gas inventories for the week ended October 28grew to 3,963 billion cubic feet (BCF) from 3,909 bcf in the previous week, representing an increase of 54 bcf. The previous reading called for 73 bcf. Following this, the United States Natural Gas Fund, LP UNG traded up.

Summary

• Total gas inventories 54 bcf versus consensus estimate of 56 bcf.
• South Central region’s inventory is 34 bcf.
• Midwest region’s inventory is 15 bcf.
• East region’s inventory is 1 bcf.
• Mountain region’s inventory is 4 bcf.
• No changes in Pacific region.

According to the statement, “Working gas in storage was 3,963 Bcf as of Friday, October 28, 2016, according to EIA estimates. This represents a net increase of 54 Bcf from the previous week. Stocks were 48 Bcf higher than last year at this time and 173 Bcf above the five-year average of 3,790 Bcf. At 3,963 Bcf, total working gas is above the five-year historical range.”

Following the better than expected inventory, UNG traded up 0.67 percent to $7.54.