US Weekly Energy Report – 2 July 2018
Prompt-month natural gas futures on the New York Mercantile Exchange closed on Friday at $2.924 per MMBtu, down $0.021 from the previous week. Average pricing for the balance of 2018 and calendar year 2019 was at $2.947 and $2.806 per MMBtu, respectively.
The Energy Information Administration reported a net injection of 66 Bcf for the week ending June 22, compared to a five-year average increase of 86 Bcf and a year-ago build of 48 Bcf. At 2,074 Bcf, total storage inventories are currently 501 Bcf below the benchmark five-year average and 735 Bcf behind year-ago levels.
Domestic natural gas production increased to 80.9 Bcf per day for the seven-day period ending June 27, up 0.8 Bcf per day from the previous week and 9.6 Bcf per day ahead of the same period last year.
The power generation sector led natural gas demand over the most recent week, averaging 32.3 Bcf per day compared to 30.0 Bcf per day during the same period last year. Total natural gas export volumes were up from the previous week, led by gains of 0.3 Bcf per day in LNG sendout.
Population-weighted cooling degree days were 4.2% above average for the week ending June 29. Widespread heat is expected to persist in the 6-10 day period, with forecasts for above-normal temperatures across most of the country.