US Natgas Futures Drop to 11-week Low on Surprise Storage Build

In what has already been a volatile year of trade, the June 23 price drop was only the biggest one-day decline since mid-June. So far in 2022, U.S. natural gas futures have lost over 10% in five sessions.

Reuters

U.S. natural gas futures dropped 9% to an 11-week low on June 21 on a bigger-than-expected storage build as the extended shutdown of the Freeport LNG export plant in Texas allows utilities to quickly rebuild low gas stockpiles.

The U.S. Energy Information Administration (EIA) said utilities added a surprise 74 Bcf of gas to storage during the week ended June 17.

That was more than the 65-Bcf build analysts forecast in a Reuters poll and compares with an increase of 49 Bcf in the same week last year and a five-year (2017-2021) average increase of 82 Bcf.

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