Natural gas prices slide after weekly inventory data

US natural gas prices are down about 2% today after a bearish inventory report. Stockpiles rose by 120 bcf compared to 115 bpc as we get ready for the summer power burn season.

Natty is in an interesting spot at the moment and though prices have corrected since March, January futures remain just shy of $5 as LNG demand remains high and data center demand ramps up. The ongoing coal-to-gas switching is also continuing while lower oil prices mean less associated gas production.

I think the best way to look at gas is via days of supply and this chart from TD highlights that we’re about 18% below last year’s level.

The best thing for gas prices from here would be a decline in WTI into the $50s as that’s going to curb supply. Otherwise, it will all be about watching the weather and waiting for winter.

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