Weekly gas injections into US storage to be above 100 billion cubic feet till June — EBW

Eli Rubin, an analyst at EBW Analytics Group, outlines a decline in natural gas prices driven by substantial injections into US storage. The injection of 110 billion cubic feet reported by the Energy Information Administration (EIA) is deflating investor enthusiasm. However, the expert projects gas prices will rise in the long term. 

According to the EIA, the amount of gas in US storage was 2.255 trillion cubic feet as of May 9. This reading is 57 billion above the five-year average. In addition, inventories increased by 110 billion from a week earlier. Rubin warns that weekly injections may exceed 100 billion cubic feet until early June. 

Besides, the analyst says that near-term cooling degree days in the United States are ticking lower. It softens expectations of a hot summer and of growing demand for gas. However, the ongoing heating season in the Upper Midwest may support fuel consumption this week.