By Kenneth Fung
WASHINGTON (MNI) – The U.S. Energy Information Administration
Thursday is expected to report a build in natural gas inventories for
the week-ended March 25.
Analysts in a Platts survey project an increase of between 1
billion and 5 billion cubic feet from natural gas storage last week.
According to Platts, “A build within that range would be smaller
than the 12 billion cubic feet injection in the same week in 2010 but
greater than the five-year-average drawdown of 22 billion cubic feet.”
“As a result, both the 121 billion cubic feet storage deficit to a
year ago and the five-year-average surplus of 34 billion cubic feet for
the week that ended March 18 could expand,” the energy information firm
added.
Natural gas inventories normally increase in the spring and summer
months because consumption decreases as temperatures rise.
In a speech at Georgetown University Wednesday, President Barack
Obama called on the U.S. to reduce its dependence on foreign oil. He set
a goal of cutting oil imports by one-third over the next decade, and
described the potential for natural gas development in the U.S. as
“enormous.”
Natural gas futures for May delivery have surged 12% since the
earthquake in Japan, including a 2% jump today.
–Kenneth Fung is a reporter with Need To Know News in Washington
** Market News International Washington Bureau: 202-371-2121 **
[TOPICS: M$U$$$,MAUDS$]