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US Nat Gas Inventory Falls, Price Flat

XOM, CHK, EOG, UNG, OIH

The US Energy Information Administration EIA Thursday reported the US Nat Gas as stocks fell by a total of 73 billion cubic feet last week, within expected withdrawal range of 51 to 90 billion cubic feet.

Nat Gas futures prices were about 0.7% lower in advance of the EIA’s report at around 3.68 per thousand cubic feet, and rose fractionally immediately following the EIA report.

The EIA reported that US working stocks of natural gas totaled 3.8 trillion cubic feet, about 168 billion cubic feet higher than the five-year average of 3.64 trillion cubic feet. Working Nat Gas in storage totaled 3.84 trillion cubic feet for the same period a year ago.

Withdrawals are normal for this time of year, but absent much colder weather, drawdowns of this size will have little impact on Nat Gas in storage or on prices. The good news for producers is that working Nat Gas in storage is now slightly below last year’s level at this time.

Here’s how stocks of the largest US Nat Gas producers are reacting to Thursday’s report:

Exxon Mobil Corp. NYSE: XOM, the country’s largest producer of Nat Gas, is down about 0.3% at 87.48 in a 52-wk range of 77.13 to 93.67.

Chesapeake Energy Corp. NYSE: CHK is down about 0.4% at $17.04 in a 52-wk range of 13.32 to 26.09.

EOG Resources Inc. NYSE: EOG is down about 1% at 117.56 in a 52-wk range of 82.48 to 124.49.

The US Natural Gas Fund (NYSEArca: UNG) is up about 0.8% at 21.17 in a 52-wk range of 14.25 to 31.20.

The Market Vectors Oil Services ETF (NYSEArca: OIH) is down about 0.3% at 38.89 in a 52-wk range of 32.54 to 45.14.