US Natural Gas Storage Rises Further on Season Swing

US utilities and energy companies added 50 billion cubic feed of natural gas to storages to 1.911 trillion cubic feet on the week that ended April 3rd, loosely in line with the median market consensus of a 46 bcf increase, and consolidating the start of the building season. The increase was in line with the surging domestic production levels from recent quarters, buffering US gas prices and consumption from the ongoing global LNG shock as Iranian attacks on Qatari gas facilities and threats to LNG tankers in the Persian Gulf hampered global flows. US stocks were 4.9% above the corresponding period of the previous year, and 4.8% above the current five-year average.

US energy firms withdrew 54 billion cubic feet of natural gas from storage in the week ended March 20, exceeding expectations for a 44 bcf draw. This compares with a 33 bcf injection during the same period last year and an average decline of 21 bcf over the past five years. Total stockpiles fell to 1.829 trillion cubic feet, standing about 5.2% above year-ago levels and roughly 0.8% above the five-year average. In the previous week, utilities had added 35 bcf to storage.

US energy firms withdrew billion cubic feet of natural gas from storages on the first week of March, less than market expectations of a 42 bcf withdrawal. It was the lowest pull in gas inventories since the start of the year and tying for the lowest pull since the third week of the third week of the withdrawal season in early December, suggesting companies may be close to the end of the season. The pulls were focused solely on the East and Midwest regions, which saw continued cold weather through the start of the month, enough to offset builds in other parts of the country. Still, inventories remained 8.3% higher than the comparative period in the previous year, while remaining 0.9% below the current five-year average.