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Natural Gas Keeps Falling on Inventory Revision...
Natural gas futures retreated for a second-straight session from an adjustment in federal data that show inventories are higher than previously reported.
By TIMOTHY PUKO
Nov. 18, 2015 10:38 a.m. ET
http://www.wsj.com/articles/natural-gas-keeps-falling-on-inventory-revision-1447861135
Natural gas futures retreated for a second-straight session from an adjustment in federal data that show inventories of the fuel are higher than previously reported.

Futures for December delivery recently traded down 1.7 cents, or 0.7%, at $2.354/mmBtu on the New York Mercantile Exchange.

The Energy Information Administration revised its inventory data late on Monday to show 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 because of a change in the agency’s methodology.

The revised number pushes stockpiles closer to the psychologically important 4 tcf mark and increases fears that natural-gas storage facilities could run out of room to store the fuel. Mild weather has reduced demand for the heating fuel in recent weeks, leading to larger-than-average storage builds.

The change is neutralizing bullish weather updates from overnight, said Frank Clements, co-owner of Meridian Energy Brokers Inc. outside New York. Many weather reports are now showing colder weather than previously expected for the second half of November, raising hopes for stronger demand for the heating fuel.

“You’re getting conflicting news,” Mr. Clements said. “The cold forecast, and all this natural gas, keeps things going sideways.”

Physical gas for next-day delivery at the Henry Hub in Louisiana last traded at $2.1025/mmBtu, compared with Tuesday’s range of $2.01-$2.10. Cash prices at the Transco Z6 hub in New York last traded at $2.06/mmBtu, compared with Tuesday’s range of $1.92-$2.00.

Write to Timothy Puko at [e-mail]