Natural gas storage tanks. (Source: Shutterstock)
The U.S. Energy Information Administration (EIA) reported a 2 Bcf drop in U.S. storage levels for the week ending Nov. 20 as the injection season came to a close.
About 3.97 Tcf of natural gas is in storage, the EIA reported Nov. 27 ahead of the Thanksgiving holiday.
Stocks remain outside of the five-year high-and-low range and are 267 Bcf above the EIA’s five-year average. The level met market expectations, according to Natural Gas Intelligence, and did not change a bearish market that opened the day, though the overall outlook for natural gas has been positive for the fall.
Natural gas prices have moved in an upward direction for most of November, starting at $2.66/MMBtu on the Henry Hub front-month futures price on Nov. 1. Daily trading for the shortened holiday week saw prices flirting with $3.50/MMBtu for the first time in 2024.
The closing Henry Hub price on Nov. 26 was $3.47/MMBtu. The price fell more than $0.20 in trading before the storage report and fell about $0.07 afterwards, to $3.20/MMBtu at midday.
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