By Kenneth Fung
WASHINGTON (MNI) – The U.S. Energy Information Administration is
expected Thursday to report a build in natural gas storage for the week
of August 20.
Anuj Sharma, an analyst at Houston-based energy consultancy
Pritchard Capital Partners, predicts a build of 33 billion cubic feet,
but then added, “There could be a downside surprise to the median
forecast due to increased demand from utilities.”
Natural Gas inventories normally rise in the Spring and Summer due
to lower consumption during warm-weather months. Natural Gas futures for
September delivery have fallen over 20% since topping $5 on August 2.
Analysts in a Platts survey expect the EIA to report a build of 37
to 41 billion cubic feet to natural gas storage for the August 20 week.
Platts notes that according to the EIA, a build within those
expectations would be smaller than the 53-Bcf injection in the
comparable week of 2009 and the five-year-average of 59 Bcf.
“As a result, the 185-Bcf deficit to last year is likely to expand,
while the 19-Bcf surplus over the five-year average is expected to
narrow,” Platts said.
–Kenneth Fung is a reporter with Need To Know News
** Market News International Washington Bureau: 202-371-2121 **
[TOPICS: M$U$$$,MAUDS$]
