News

1506 ET – U.S. natural gas futures shake off a bearish storage report and settle higher as the market looks to demand for gas to refill inventories over the summer. Prices fell after the EIA reported a bigger-than-expected 37 Bcf injection into storage last week, and recovered later in the session. The storage injection reduced the deficit against the five-year average and the year-ago level. The Nymex April contract goes off the board at $3.95/mmBtu, up 2.3%, and gas for May delivery settles up 1.4% at $3.925. ( anthony.harrup@wsj.com )

U.S. Natural Gas Futures Reverse Course

1237 ET – U.S. natural gas futures pick up after digesting a bigger-than-expected storage build that had pushed prices lower. The EIA reported a 37 Bcf injection for last week, leaving inventories at 1,744 Bcf and narrowing the deficit against the five-year average and year-ago level. “The fact that the market isn’t succumbing to more selling pressure this morning is an indication of strong underlying support,” Andy Huenefeld of Pinebrook Energy Advisors says in a note. Despite an early start to the injection season, stocks will remain at a steep deficit to year-ago levels and “concerns about the pace of injections this summer will remain at the forefront until more material production growth is realized,” he adds. The Nymex April contract is up 0.8% at $3.892/mmBtu ahead of today’s expiration, and gas for May delivery is up 1.2% at $3.914/mmBtu. ( anthony.harrup@wsj.com )

U.S. Natural Gas Futures Steady Ahead of Storage Data

1002 ET – Natural gas futures are mixed ahead of today’s April expiration with the market looking to the EIA’s storage report, which is expected to show a second weekly inventory build to confirm an early start to the injection season. “After three bearish EIA surprises in the past four weeks, the market still appears to be struggling to get an accurate grasp of underlying fundamental balances,” Eli Rubin of EBW Analytics says in a note. Analysts in a Wall Street Journal survey estimate a 26 Bcf injection to raise storage to 1,733 Bcf, or about 7% below the five-year average. The Nymex April contract is up 0.1% at $3.864/mmBtu, and gas for May delivery is practically unchanged at $3.871/mmBtu. ( anthony.harrup@wsj.com )

European Gas Prices Rise as Russia Signals Lengthy Repairs at Sudzha Station

0936 GMT – European natural-gas prices edge higher in early trade after Russia indicated that the Sudzha cross-border gas point might require lengthy repairs. The benchmark Dutch TTF contract is up 0.5% at 41.10 euros a megawatt hour, following a decline in the previous session amid Black Sea cease-fire talks, warmer weather forecasts and ample LNG supplies. According to TASS, Russia’s Deputy Prime Minister Alexander Novak said restoration of the gas metering station in the Kursk region–which until Jan. 1 was carrying Russian gas to Europe–will require “a fairly long time.” “Russian gas flows through Ukraine are unlikely to return in time for summer injection season,” Rabobank’s energy strategist Florence Schmit says. Meanwhile, the EU ban on Russian LNG transshipments kicked in, mainly affecting Russia’s Yamal LNG project, which supplies both Europe and Asia. ( giulia.petroni@wsj.com )

Corrections & Amplifications
The EIA reported a 37 Bcf injection for last week. An earlier version of the item from 1237 ET incorrectly said the EIA reported a 26 Bcf injection. (Corrected on March 27)