Nat-Gas Prices Retreat as Weekly EIA Inventories Climb Above Expectations

Core Insights - Natural gas prices retreated due to a greater-than-expected build in weekly natural gas storage, with inventories rising by 87 billion cubic feet (bcf) for the week ended October 17, surpassing expectations of 83 bcf and the five-year average of 77 bcf [1][4] Group 1: Natural Gas Prices and Storage - November natural gas prices closed down by 3.07% on Thursday [1] - The EIA reported a year-over-year increase of 0.6% in natural gas inventories as of October 17, which were also 4.5% above the five-year seasonal average [4] Group 2: Production and Demand - US dry gas production was reported at 107.9 bcf/day, reflecting a year-over-year increase of 5.4% [2] - Lower-48 state gas demand was 75.5 bcf/day, up 3.4% year-over-year [2] - Estimated LNG net flows to US LNG export terminals were 16.6 bcf/day, a 1.0% increase week-over-week [2] Group 3: Electricity Output - US electricity output for the week ended October 18 rose by 4.0% year-over-year to 73,756 GWh [3] - Over the 52-week period ending October 18, US electricity output increased by 2.89% year-over-year to 4,280,821 GWh [3] Group 4: Market Conditions - A mixed weather forecast contributed to the decline in natural gas prices, with cooler temperatures expected in the southern and eastern US [2] - As of October 21, European gas storage was reported to be 83% full, compared to the five-year seasonal average of 92% [4]