By Sumit Roy
Can the rally in natural gas continue?
Natural gas prices rose after the Energy Information Administration reported that natural gas inventories totaled 3,576 billion cubic feet at the end of last week, an increase of 80 bcf from the prior week. That was above analyst expectations that were calling for an injection in the low to mid-70s.
The injection was well below the year-ago build of 111 bcf, but above the five-year average build of 75 bcf. In turn, the inventory surplus compared with the year-ago level dropped to 264 bcf, while the surplus compared with the five-year average rose to 295 bcf (calculated using a slightly different methodology than the EIA).