BWS Blog


Streak Of Triple-Digit Natural Gas Builds Comes To An End

Thursday, June 27, 2019 at 4:19PM


After a run of six consecutive weeks with a reported natural gas build over 100 bcf, the streak finally ended with today's EIA report that showed we injected 98 bcf for the week ending 6/21.

natural gas commodity weather

This turned out dead-on with the estimate that we had held since the start of this week, outlined in our Monday weekly report.

natural gas commodity weather

While the build was well above the 5-year average build, it was reflective of much tighter supply / demand balances than we have seen for a long time, as the higher number was more a product of just being in a lower demand weather regime.

natural gas commodity weather

Many parts of the country saw cooler than normal temperatures, limiting natural gas demand.

natural gas commodity weather

The confirmation of tighter supply / demand balances helped prices stage a rally today, with the new prompt month August contract rising nearly 2.5% on the day.

natural gas commodity weather

Forecast demand is also on the increase, with much more above normal temperature coverage in the near term, boosting natural gas demand.

natural gas commodity weather

The longer the hotter pattern lasts, the more prices can continue to advance higher. Our latest research can keep you up to speed on that topic as well as others that will influence the movement of natural gas prices. Sign up for a 10-day free trial here to take a closer look at all of the products we have to offer.