US gas storage build of 67 Bcf is ‘a bullish surprise’

摘要

Houston—US gas storage inventories rose by 67Bcf for the week ending June 8, a smaller-than-expected build that nonetheless lifted stocks to2.944 Tcf, a record for this time of year.Most analysts had predicted that the Ener-gy Information Administration would report aninjection between 71 and 75 Bcf. NYMEX gasfutures shot higher after the data’s release,with the July contract rallying 31 cents, or14%, to settle at $2.495/MMBtu.“The 67-Bcf in net injection was less thanexpected and suggests that not as much reduction in coal-to-gas switching has takenplace as had been anticipated, or that pro-duction may have declined a bit in the latestperiod,” wrote Citi Futures Perspective analystTim Evans. “Either way, it’s a bullish surprise,and supportive relative to the 88-Bcf five-yearaverage for the date.”