US natural gas storage saw a significant increase of 79 billion cubic feet (bcf) in the week ended April 21, exceeding industry expectations for a second consecutive week due to lower-than-anticipated heating demand, as reported by the Energy Information Administration (EIA) on Thursday.
Investing.com-tracked analysts had projected a rise of 75 bcf in natural gas inventory for the previous week after accounting for power generation and heating. This latest weekly increase brings total gas inventory to 2.009 trillion cubic feet (tcf), according to EIA records.
This level represents a 35% increase over last year’s level of 1.484 tcf and a 22% increase over the five-year average of 1.644 tcf.
Houston-based energy markets advisor Gelber & Associates said in a note, “This puts the market in a great position for filling storage to the necessary levels for the winter, and should injections continue to be on the heavier side, an end-of-season level of 3.8-3.9 Tcf is more than possible.”
Last week saw around 62 heating degree days (HDDs), according to data from weather data provider Refinitiv. This is compared to a 30-year average of 68 HDDs for the same period.
HDDs estimate the demand for heating homes and businesses by measuring the number of degrees a day’s average temperature is below 65 degrees Fahrenheit (18 degrees Celsius).
Overall, the surge in natural gas storage puts the market in a favorable position for the winter season.
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