Platts pre-report analyst survey suggests US EIA data will show an 53- to 57-Bcf addition in natural gas stocks for the latest reporting week

Washington - September 1, 2010

The US Energy Information Administration (EIA) is expected Thursday to report a net injection of 53 to 57 billion cubic feet (Bcf) to natural gas storage for the week that ended August 27, according to a Platts survey of analysts.

A build within that range would be smaller than the 64-Bcf injection in the comparable week of 2009 and the five-year-average of 62 Bcf, according to the EIA. As a result, the 198-Bcf deficit to last year is expected to grow, while the 177-Bcf surplus over the five-year average is likely to narrow.

Beyond the consensus, the wider range of analyst estimates for the week that ended August 27 spanned from injections of 49 Bcf to 60 Bcf.

Tim Evans, an analyst at Citi Futures Perspective, said that while weekly injections have been trending higher, there is enough heat in the forecast to boost energy demand and cap the amount of gas available for storage.

"For Thursday's report, we think that will mean 55 Bcf in net injections, moderately below the 62-Bcf five-year average build," Evans said. "This variance may not seem compelling, but it will be the 11th consecutive week with a declining year-on-five-year average surplus, normally an intermediate-term support for prices."

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This analyst survey is conducted by Platts’ editorial team in Washington, DC and is published every Wednesday morning, one day ahead of the 10:30 a.m. (ET) Thursday release of the weekly natural gas storage report of the U. Energy Information Administration. Platts has been conducting this survey since January 2007. The survey includes 15 to 25 analysts, some on a rotational basis.

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