Henry Hub natural gas futures ( NGV2 ) fell $0.728 MBtu (-7.99%) to $8.397 on the rail deal, without which demand for natural gas would have increased in an already tight market. A disruption of the rail industry would have disrupted the flow of coal. A larger-than-expected natural gas storage build also weighed on prices, which were trading near record highs amid a tight market. On Thursday, the Energy Information Administration’s (EIA) Weekly Natural Gas Storage Report showed that total active gas in underground storage in the Lower 48 rose to 2,771 Bcf for the week ended Sept. 9, from 2,694 Bcf the previous week. While this is higher than the week and a bearish signal for prices, working gas in storage is still down 7.4% from this time last year and 11.3% below the five-year average of 3,125 Bcf. The largest gain in terms of working gas in underground storage was seen in the Midwest, followed by the East. Natural gas operating in the Pacific region declined for the week ended September 9. The build-up in inventories and the resulting drop in prices could help ease some of the price pressures currently plaguing US natural gas buyers. Storage creation was above analysts’ expectations. The combination of the rail deal and storage construction was enough to push prices significantly lower, and it fell in line with the drop in crude oil prices as well. By Julianne Geiger for Oilprice.com More top reads from Oilprice.com:
