US natural gas prices drop 3.7% on storage data – ING

US natural gas prices fell sharply after storage data from the EIA revealed a larger-than-average inventory build, reinforcing concerns over supply resilience despite year-on-year deficits, ING’s commodity experts Ewa Manthey and Warren Patterson note.

-Gas inventories remain 14.3% below last year’s levels

“US natural gas futures sold off yesterday, with Henry Hub settling 3.7% lower on the day. Energy Information Administration (EIA) storage data shows that gas storage increased by 110bcf over the last week.”

“This is in line with expectations, but higher than the 5-year average for an 83bcf increase. Total US natural gas storage stands at 2.255tcf, down 14.3% year-on-year, but 2.4% above the 5-year average.”