Injection exceeds expectations – The EIA reported a natural gas injection of 74 bcf compared to market expectations (as per Bloomberg) of 68 bcf and the five-year average of 67 bcf. For the comparable week last year, the EIA reported an injection of 64 bcf. Total storage now sits at 3,414 bcf, or 4.6% below last year’s level of 3,580 bcf, but 6.3% above the five-year average of 3,212 bcf.
Cooling demand continues – Over the past week, the U.S. reported cooling degree days of 50, ~47% above the five-year average of 34 and ~16% above last year’s level of 16%. Warmer weather is expected to continue across much of the U.S. for at least the next six to ten days as highlighted below which should support near-term natural gas demand.