US Weekly Energy Report – 25 June 2018

Executive Summary

Prompt-month natural gas futures on the New York Mercantile Exchange closed on Friday at $2.945 per MMBtu, down $0.077 from the previous week. Average pricing for the balance of 2018 and calendar year 2019 was at $2.962 and $2.808 per MMBtu, respectively.

The Energy Information Administration reported a net injection of 91 Bcf for the week ending June 15, compared to a five-year average increase of 83 Bcf and a year-ago build of 63 Bcf. At 2,004 Bcf, total storage inventories are currently 499 Bcf below the benchmark five-year average and 757 Bcf behind year-ago levels.

Domestic natural gas production increased to 80.1 Bcf per day for the seven-day period ending June 20, up 0.4 Bcf per day from the previous week and 8.5 Bcf per day ahead of the same period last year.

The power generation sector led natural gas demand over the most recent week, averaging 33.2 Bcf per day compared to 31.2 Bcf per day during the same period last year. Total natural gas export volumes were up from the previous week, led by gains of 0.4 Bcf per day in LNG sendout.

Population-weighted cooling degree days were 13.8% above average for the week ending June 22. The 6-10 day weather outlook includes above-normal temperatures in key U.S. population centers, with the strongest anomalies inn Northeast.