US Weekly Energy Report – 5 November 2018

​Executive Summary

Prompt-month natural gas futures on the New York Mercantile Exchange closed on Friday at $3.284 per MMBtu, up $0.099 from the previous week. Average pricing for the balance of winter and calendar year 2019 was at $3.079 and $2.832 per MMBtu, respectively.

The Energy Information Administration reported a net injection of 48 Bcf for the week ending October 26, compared to a five-year average increase of 62 Bcf and a year-ago build of 65 Bcf. At 3,143 Bcf, total storage inventories are currently 638 Bcf below the benchmark five-year average and 623 Bcf behind year-ago levels.

Domestic natural gas production increased to 87.3 Bcf per day for the seven-day period ending October 31, up 0.7 Bcf per day from the previous week and 9.4 Bcf per day ahead of the same period last year.

The power generation sector led natural gas demand over the most recent week, averaging 23.3 Bcf per day compared to 22.5 Bcf per day during the same period last year. Total natural gas export volumes were unchanged from the previous week, with gains in LNG sendout offset by declines in Mexican output.

Population-weighted heating degree days were 10.3% below average for the week ending November 2. The latest 6-10 day weather outlook includes widespread below-normal temperatures for much of the country.