The Platts pre-report analyst survey suggests U.S. EIA data will show a 93 to 98 Bcf build to natural gas stocks Washington - May 20, 2009 The U.S. Energy Information Administration (EIA) on Thursday is expected to report an addition of between 93 and 98 billion cubic feet (Bcf) to natural gas storage inventories for the week that ended Friday, May 15, according to a Platts survey of analysts. A build within those expectations would be slightly larger than last year's 86-Bcf injection and the five-year-average build of 90 Bcf, according to EIA. As a result, the year-over-year surplus, at 497 Bcf as of the week ending May 8, could top 500 Bcf, while the surplus over the five-year average of 374 Bcf should also expand. The wider range of analyst expectations for the latest reporting period spanned from injections of 88 Bcf to 105 Bcf. Citi Futures Perspective analyst Tim Evans said the storage outlook should keep downward pressure on gas prices in the near term, while longer-term prospects are more supportive as declines in drilling activity translate into reduced supplies on the market in the second half of the year. "However, until this decline is confirmed and reaches a scale that tips the market balance from surplus to deficit, we think prices will remain vulnerable to bearish storage data and occasional bouts of price weakness," Evans said.
The U.S. Energy Information Administration (EIA) on Thursday is expected to report an addition of between 93 and 98 billion cubic feet (Bcf) to natural gas storage inventories for the week that ended Friday, May 15, according to a Platts survey of analysts.
A build within those expectations would be slightly larger than last year's 86-Bcf injection and the five-year-average build of 90 Bcf, according to EIA. As a result, the year-over-year surplus, at 497 Bcf as of the week ending May 8, could top 500 Bcf, while the surplus over the five-year average of 374 Bcf should also expand.
The wider range of analyst expectations for the latest reporting period spanned from injections of 88 Bcf to 105 Bcf.
Citi Futures Perspective analyst Tim Evans said the storage outlook should keep downward pressure on gas prices in the near term, while longer-term prospects are more supportive as declines in drilling activity translate into reduced supplies on the market in the second half of the year.
"However, until this decline is confirmed and reaches a scale that tips the market balance from surplus to deficit, we think prices will remain vulnerable to bearish storage data and occasional bouts of price weakness," Evans said.