WASHINGTON (Pakistan Point News / Sputnik - 18th October, 2019) US natural gas inventories have crossed the five-year average of above 3.5 billion cubic feet for the first time in more than two years, the Energy Information Administration (EIA) said on Friday.
"Working natural gas inventories in the Lower 48 states totaled 3,519 billion cubic feet (bcf) for the week ending October 11, 2019," the EIA said on its website. "This is the first week that lower 48 states' working gas inventories have exceeded the previous five-year average since September 22, 2017."
According to the EIA's Weekly Natural Gas Storage Report, injections of natural gas into underground caverns in three of the past four weeks each had surpassed 100 bcf, or about 27 percent more than typical injections for that time of the year.
EIA noted that working natural gas capacity at underground storage facilities helped market participants balance the supply and consumption of natural gas.
"This week's inventory level ends a 106-week streak of lower-than-normal natural gas inventories," the EIA said.
Relatively low inventories heading into winter months can put upward pressure on natural gas prices, the EIA said, adding that relatively high inventories can put downward pressure on natural gas prices.
This week's inventory level ends a 106-week streak of lower-than-normal natural gas inventories.
EIA's historical data shows that natural gas inventories in the lower 48 US states entered the 2017-18 winter season lower than the previous average.
Episodes of relatively cold temperatures in the 2017-18 winter - including a "bomb cyclone" - resulted in record withdrawals from storage, increasing the deficit to the five-year average, the EIA added.
