Natural gas prices dropped on Thursday following the EIA’s inventory report which showed a larger than expected building in inventories. Working gas in storage was 1,343 Bcf as of Friday, April 27, 2018, according to EIA estimates. This represents a net increase of 62 Bcf from the previous week. Expectations were for a rise fo 48 Bcf. Stocks were 903 Bcf less than last year at this time and 534 Bcf below the five-year average of 1,877 Bcf. At 1,343 Bcf, total working gas is within the five-year historical range.
The Weather is mixed
Temperatures were moderate, but remain colder than normal, across the eastern United States and Midwest during the storage week. Temperatures in the Lower 48 states averaged 49 degrees Fahrenheit, 4°F lower than the normal and 11°F lower than last year at this time. Temperatures in the heavy natural gas-consuming areas of the Midwest and East regions posted significantly colder-than-normal temperatures. The average temperature for the Lower 48 states was 3°F higher than during the prior storage week. The coming weak should be warmer than normal which should drive cooling demand.
The Trade Deficit Narrowed
U.S. trade deficit narrowed 15.2% to -$49.0 billion in March after widening 1.9% to -$57.7 billion in February which was revised form -$57.6 billion. It’s the lowest since late last year. Imports fell 1.8% to $257.5 billion after rising 1.7% to $262.1 billion which was revised from $262.0 billion. Exports increased 2.0% to $208.5 following February’s 1.7% rebound to $204.4 billion. The real goods balance narrowed to -$62.1 versus -$69.0 billion which was revised from -$69.1 billion with imports falling 1.6% and exports up 2.9% after respective gains of 0.8% and 2.0%. The trade deficit with China was -$25.9 billion versus -$29.3 billion. The balance with Canada moved to a $0.3 billion surplus from -$0.4 billion.