According to the monthly inventory published by the U.S. Energy Department, there has been a lower than expected growth in the supplies of natural gas. It reported that the build was minimal than expected. However, the liquefied natural gas gained momentum in the last week.
The underground storage of natural gas in the lower 48 states increased by 98 billion cubic feet (Bcf) in the last week. The increase in the stockpiles underground storage was lesser than last year. The stocks of natural gas are at 2,313 billion cubic feet (Bcf). It is lower by 386 Bcf that 14.3%, than the last year at the same time. Moreover, it is 61 Bcf that 2.6% lower than the five-year average from 2016 to 2020.
The average natural gas supply per day was at 96.6 Bcf, lower by 0.4% weekly. Their low supply was seen due to the decreased shipments from Canada. The critical pipeline of the Canada natural gas supply was closed due to maintenance-related work. However, the daily supply of natural gas increased by 1.2% to 84 Bcf from 83 Bcf. The 83 Bcf of consumption was reported in the last week. The growth in demand was due to see in the residential and commercial sector.Meanwhile, the price of natural gas increased by $3 in the last week as a result of a lower than expected inventory build.
The price of natural gas also increased due to warmer weather predictions in the U.S. The temperature changes and weather predictions bring fluctuations in the prices of natural gas. The latest reports say that the prices may change mainly due to the higher temperature-driven consumption. Most importantly, the higher demand in summer may drive the futures of the U.S. natural gas higher.