As it is, the commodity is still averaging less than half of what it did some 5-6 years back. With production remaining plentiful and expected to outpace demand for most of 2015, the commodity is likely to stay depressed for a while. About the Weekly Natural Gas Storage Report The Weekly Natural Gas Storage Report – brought out by the Energy Information Administration (EIA) every Thursday since 2002 – includes updates on natural gas market prices, the latest storage level estimates, recent weather data and other market activities or events. The report provides an overview of the level of reserves and their movements, thereby helping investors understand the demand/supply dynamics of natural gas. It is an indicator of current gas prices and volatility that affect businesses of natural gas-weighted companies and related support plays. Analysis of the Data Stockpiles held in underground storage in the lower 48 states rose by 73 billion cubic feet (Bcf) for the week ended Sep 11, 2015, within the guided range (of 70–74 Bcf gain) as per the analysts surveyed by Platts, the energy information arm of McGraw-Hill Financial Inc. However, the increase – the 24rd successive weekly injection – was less than both last year’s build of 90 Bcf and the 5-year (2010–2014) average addition of 75 Bcf for the reported week. Following past week’s climb, the current storage level – at 3.334 trillion cubic feet (Tcf) – is up 456 Bcf (16%) from last year and is 125 Bcf (4%) above the five-year average. Prices Unmoved After In-Line Storage Only to Dive Later Following the ‘as-expected’ storage injection, gas prices remained virtually unmoved – at around $2.65 per million Btu (MMBtu) – on Thursday. But the commodity fell sharply later in the week on expectations of tepid heating demand with the imminent arrival of colder autumn temperatures subsequent to the end of summer. It was down 3.3% for the week, settling at $2.61 per MMBtu after recovering from an intraday low of $2.60 per MMBtu on Friday – the lowest in more than 3 months. In fact, natural gas prices are way off the heights reached some years back. From a peak of about $13.50 per MMBtu in 2008 to below $3 now – sinking in between to a 10-year low of under $2 in 2012 – the plummeting value of natural gas represents a decline of around 80% over seven years. With production from the major shale plays remaining strong and the commodity’s demand failing to keep pace with this supply surge, natural gas prices have been held back. Even the summer cooling demand has been of little help. The price weakness translates into limited upside for natural gas-weighted companies like Chesapeake Energy Corp. CHK, Range Resources Corp. RRC, QEP Resources Inc. QEP, EOG Resources Inc. EOG and Devon Energy Corp. DVN. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report DEVON ENERGY (DVN): Free Stock Analysis Report RANGE RESOURCES (RRC): Free Stock Analysis Report CHESAPEAKE ENGY (CHK): Free Stock Analysis Report QEP RESOURCES (QEP): Free Stock Analysis Report EOG RES INC (EOG): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research
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