US Natural Gas Inventories To Reach Record Highs By October - Energy Agency
Fahad Shabbir (@FahadShabbir) Published February 24, 2020 | 11:05 PM
Natural gas in storage is expected to hit record highs in the United States by the end of October from the combination of mild winter weather and unbridled output, the US Energy Information Administration (EIA) said in an outlook published Monday
WASHINGTON (UrduPoint News / Sputnik - 24th February, 2020) Natural gas in storage is expected to hit record highs in the United States by the end of October from the combination of mild winter weather and unbridled output, the US Energy Information Administration (EIA) said in an outlook published Monday.
"EIA forecasts that the Lower 48 states' working natural gas in storage will end the 2019-20 winter heating season (November 1-March 31) at 1.935 billion cubic feet (bcf), with 12 percent more inventory than the previous five-year average," the agency said in its February Short-Term Energy Outlook.
The EIA attributed the rise to mild winter temperatures that led to smaller withdrawals from gas from storage, adding that this was compounded by continued strong production in the fuel.
US natural gas inventories were already high when the winter heating cycle began, the EIA said.
As of October 11, 2019, total gas in storage surpassed the previous five-year average - an indicator of typical storage levels - for the first time since mid-2017, the EIA said.
Inventories began the heating season on October 31, 2019 at 3.725 bcf, the agency added.
"EIA expects withdrawals from working natural gas storage to total 1.790 bcf at the end of March 2020," the EIA said. "If realized, this would be the least natural gas withdrawn during a heating season since the winter of 2015-16, when temperatures were also mild."
US natural gas futures hit three-week lows in New York trading on Monday, hovering at under $1.85 per million metric British thermal units as weather forecasts indicated warmer-than-usual temperatures for this time of year.
It is not known how demand for gas will fare during the summer, when the fuel is used to generate power required for cooling.
The EIA said while it expected current low prices of gas to de-incentivize production this year, resulting in lower output, inventories were still seen exceeding the previous five-year average for the remainder of 2020.
Related Topics
Recent Stories
Earthquake jolts Karachi
Sindh minister orders operation after attack on police in Ghotki
TikTok to fight US ban law in courts
Anger among Ukrainians in Poland as Kyiv halts passport renewals
Police book youngster for abusing student for one year
British-Pakistani firm unveils $35 million luxury apartments for overseas Pakist ..
Watford hire Cleverley as permanent boss
Police arrest 23 suspects, recover stolen money, phones
Colorful cultural festival concludes at NUML
Immunization awareness week kicks off in Balochistan
Teenage girl arrested after stabbing at Welsh school
Ministers visit Aziz Bhatti Shaheed Hospital following roof collapse incident
More Stories From Business
-
British-Pakistani firm unveils $35 million luxury apartments for overseas Pakistanis in Islamabad
5 minutes ago -
European stocks lose momentum after global rally
24 minutes ago -
New pulses varieties imperative to cater domestic food requirements: Dr Khalid Hasan
1 hour ago -
CEO KP-EZDMC meets CRBC officials
2 hours ago -
Pakistan among nine poor countries that produces 90 percent cigarettes for world
2 hours ago -
Chief Minister Gilgit Baltistan Haji Gulbar Khan calls on Minister for Privatisation
3 hours ago
-
Germany nudges up growth forecast, ailing economy at 'turning point'
3 hours ago -
Revised UAF budget recommended
3 hours ago -
IDEA, TEVTA organizes Job Fair for youth
3 hours ago -
Massive financial, administrative scam unearthed at SCCI
3 hours ago -
FCCI welcomes Iranian president's visit
3 hours ago -
Germany nudges up growth forecast, ailing economy at 'turning point'
4 hours ago