Natural Gas Falls on Revised Inventory Data Analysts said inventories are higher than previously reported By NICOLE FRIEDMAN Nov. 17, 2015 10:31 a.m. ET http://www.wsj.com/articles/natural-gas-falls-on-revised-inventory-data-1447774265 NEW YORK--Natural gas prices slid Tuesday after government analysts said inventories of the fuel are higher than previously reported.
The Energy Information Administration revised its inventory data late Monday to show that natural-gas inventories rose by 54 billion cubic feet to a record high of 3.985 trillion cubic feet in the week ended Nov. 6. The revision increased the previously reported stockpile level by 7 bcf due to a change in the agency’s methodology.
The revised number increases fears that natural-gas storage facilities could run out of room to store the fuel if inventories keep growing. Mild weather has reduced demand for the heating fuel in recent weeks, leading to larger-than-average storage builds.
“Natural gas is heading substantially lower this morning in the wake of an EIA revision to U.S. natural gas inventories,” said energy-consulting firm Schneider Electric in a note.
Futures for December delivery recently fell 6.7 cents, or 2.8%, to $2.318 a million British thermal units on the New York Mercantile Exchange.
In addition, forecasts released Tuesday called for slightly warmer temperatures in late November than previously expected on the East Coast, a major region for natural gas demand, according to MDA Weather Services.
“An unusually mild first half of November is limiting demand, keeping storage at high levels,” said London consulting firm Energy Aspects in a note. “For the coming winter months, the demand story still seems weak.”
Physical gas for next-day delivery at the Henry Hub in Louisiana last traded at $2.0125/mmBtu, compared with Monday’s range of $2.1275-$2.15. Cash prices at the Transco Z6 hub in New York last traded at $1.92/mmBtu, compared with Monday’s range of $2-$2.05.
Write to Nicole Friedman at nicole.friedman@wsj.com
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