U.S. natural gas inventories likely increased by more than usual last week as strong production and soft LNG feedgas flows offset high power-sector demand driven by hot summer weather, particularly in Texas and the western U.S.
Natural gas in underground storage facilities is expected to have risen by 38 billion cubic feet to 3,094 Bcf in the week ended July 24, according to the average estimate of 11 analysts, brokers and traders surveyed by The Wall Street Journal. Estimates range from a build of 31 Bcf to an increase of 58 Bcf.
The expected injection is larger than the five-year average build for the week of 26 Bcf, and would increase the storage surplus to 195 Bcf from 183 Bcf the week before. It would widen the deficit against the year-earlier level to 22 Bcf from 16 Bcf.
The U.S. Energy Information Administration is scheduled to report weekly storage data on Thursday at 10:30 a.m. EDT.