14 June 2007 18:58 [Source: ICIS news]
HOUSTON (ICIS news)--The Energy Information Administration (EIA) said on Thursday that natural gas inventories rose by 92bn cubic feet (cf) to 2,255bn cf for the week ended 8 June.
Natural gas is an important feedstock for several chemicals. The US petrochemical industry relies almost exclusively upon natural gas as feedstock.
The seasonal build was less that what was originally expected by market participants.
The agency said stocks were now within 5.49% of the 2,386bn cf level reached for the same time last year, when 77bn cf were added to stocks.
Traders had expected a build of 99bn cf, and the NYMEX futures market reacted by falling to its lowest level of the session, at $7.59/m Btu before peaking at $7.80/m Btu within the space of ten minutes.
The EIA said inventories in the West Consuming region and the Producing region were above last year’s same-week levels, while stocks in the East Consuming region were still 12.94% below last year.
Trade sources anticipate inventories could exceed the record 3,461bn cf by the traditional start of the winter heating season on 1 November with normal seasonal demand.Observers cautioned that warmer-than-normal temperatures and hurricane-induced disruptions to natural gas production would limit supplies available for injection.
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections