Total consumption for the week was up 1.2 percent, according to data from Bentek. Increases in power burn offset declines in residential, commercial, and industrial demand. While still at high levels, total supply fell this week, with dry production dropping 0.7 percent from the previous week. Total supply was down 1.2 percent, with declines in imports from Canada also contributing to the week-over-week declines.
The NYMEX August 2012 futures contract ended the week at $3.070 per MMBtu, a 3.3 percent increase over the previous Wednesday's price of $2.973 per MMBtu. The 12-month strip (the average of the 12 contracts between August 2012 and July 2013) rose slightly (1.6 percent), from $3.359 per MMBtu last Wednesday to $3.412 per MMBtu yesterday.
Working natural gas in storage increased to 3,189 Bcf as of Friday, July 20, according to EIA's WNGSR. This represents an implied net injection of 26 Bcf from the previous week. This week's injection was 35 Bcf below the 5-year (2007-2011) injection of 61 Bcf, and 22 Bcf below last year's injection of 48 Bcf. Since April 27, injections of working natural gas into underground storage have fallen short of both year-ago levels and the 5-year average, although stocks remain well above historical levels. Inventories are currently 487 Bcf (18 percent) greater than last year at this time and 435 Bcf (15.8 percent) greater than the 5-year average.
Two of the three storage regions posted increases this week. Inventories in the East and West regions increased by 20 Bcf (with the 5-year average net injection of 51 Bcf) and 7 Bcf (with the 5-year average net injection of 5 Bcf), respectively. The Producing region posted a decrease of 1 Bcf in working gas stocks (with the 5-year average net injection of 4 Bcf). In the Producing Region, working natural gas inventories decreased 5 Bcf (2.1 percent) in salt cavern facilities and increased 4 Bcf (0.5 percent) in nonsalt cavern facilities.
Temperatures during the storage report week were 3.0 degrees warmer than the 30-year normal temperature and 0.9 degrees warmer than the same period last year. Temperatures in the lower 48 States averaged 78.3 degrees, compared to 77.4 last year and the 30-year normal of 75.3. During the week all regions were warmer than normal, particularly the East North Central and New England Census divisions, which averaged 6.6 and 6.0 degrees, respectively, warmer than the 30-year normal.