U.S. Natural Gas Stockpiles Probably Rose 3.2%, Analysts Say
October 18, 2011, 5:16 PM EDTBy Christine Buurma
Oct. 18 (Bloomberg) -- U.S. natural-gas supplies probably rose by more than the seasonal average last week as warmer-than- normal weather reduced demand for the heating fuel, according to analyst estimates compiled by Bloomberg.
Inventories gained 110 billion cubic feet, or 3.1 percent, to 3.631 trillion cubic feet in the week ended Oct. 14, based on the median of eight estimates. The five-year average stockpile change for the week is an increase of 58 billion, according to Energy Department data. Supplies climbed 93 billion cubic feet a year earlier.
Temperatures were mostly above-normal last week across the continental U.S., according to Commodity Weather Group LLC in Bethesda, Maryland. The low temperature in New York on Oct. 11 was 62 degrees Fahrenheit (17 Celsius), 11 above normal, according to AccuWeather Inc. in State College, Pennsylvania.
“Last week’s storage injection was pretty big, and this week’s weather dynamics were even more favorable to a large build,” said Jason Schenker, president of Prestige Economics, an energy advisory company in Austin, Texas. “Heating and cooling demand were at a minimum.”
The Energy Department’s weekly supply report is scheduled for release at 10:30 a.m. on Oct. 20.
About 51 percent of U.S. households use natural gas for heating, according to the Energy Department.
Schenker predicted a stockpile increase of 120 billion cubic feet. The inventory estimates ranged from increases of 104 billion to 120 billion.
A department report last week showed inventories may rise to 3.77 trillion by Nov. 1, near a record 3.84 trillion last year, Bloomberg data show.
Natural gas futures rose 22.2 cents, or 6.4 percent, to $3.703 per million British thermal units last week on the New York Mercantile Exchange. Prices today fell 13.5 cents, or 3.7 percent, to $3.553 per million Btu.
--Editors: Bill Banker, Dan Stets
To contact the reporter on this story: Christine Buurma in New York at Cbuurma1@bloomberg.net;
To contact the editor responsible for this story: Dan Stets at dstets@bloomberg.net.
