Natural gas futures ended sharply last week, with a rally driven by hopes of a decline in US production due to regularly scheduled pipeline maintenance. However, the gains were overshadowed by favorable weather forecasts and neutral US government storage reports.
Bullish Traders Focused on Pipeline Maintenance
Maintenance of the pipeline led to a huge reduction in production on Tuesday. According to Natural Gas Intelligence (NGI), production declined by 2.4 Bcf / day due to pipeline maintenance incidents in the Northeast. Meanwhile, Wood Mackenzie, a natural resources research and consulting firm, said that undeclared operator field maintenance also contributes to the decline in output.
Energy Information Administration Weekly Storage Report
The US Energy Information Administration (EIA) reported on Thursday that the domestic supply of natural gas rose 15 billion cubic feet (BCF) in the week ended 23 April.
The total stock now stands at 1.898 trillion cubic feet (Tcf), down from 302 bcf a year ago and 40 bcf below the five-year average.
Further ahead of the report by Natural Gas Intelligence (NGI), a Bloomberg survey of nine analysts estimated injections ranging from 6 Bcf to 19 Bcf, with a build-up of 8 Bcf.