The U.S. Energy Information Administration (EIA) announced on Thursday that natural gas inventories rose by 79 billion cubic feet (bcf) in the week that ended May 3. Economists had predicted a build of 87 bcf. If the increase in natural gas inventories is more than expected, it implies weaker demand and is bearish for natural gas prices. The same can be said if a decline in inventories is less than expected.
The previous week recorded a climb of 59 bcf. The EIA said that inventory growth has been recorded for the 5th week in a row. Stocks are now at 2,563 bcf, 444 bcf higher than last year at this time and 640 bcf above the five-year average of 1,923 Bcf.