Natural Gas Storage Growth Slows
The U.S. Energy Department’s weekly inventory release showed a smaller-than-expected increase in natural gas supplies, reflecting the commodity”s brisk use for power generation in the face of extreme summer temperatures.
Despite the relatively soft (and below estimate) supply build, the latest injection – the twenty first in 2012 – has added to already bloated inventories. Gas stocks – currently some 15% above the benchmark levels – are at their highest point for this time of the year, reflecting low demand amid robust onshore output. This has constantly pressured spot prices that slipped to a 10-year low in April.