US. natural-gas inventories probably rose 61 billion cubic feet last week, more than the gain a year earlier, as higher nuclear production reduced demand for gas-powered electricity, analyst estimates compiled by Bloomberg show.
Stockpiles gained 2.3 percent to 2.672 trillion in the week ended July 15, based on the median of 16 estimates. Supplies climbed 55 billion cubic feet a year earlier, according to Energy Department data. The five-year average change for the week is an increase of 67 billion.
Output from nuclear plants rose to a seven-month high on July 11 as reactors in Kansas and
Pennsylvania boosted production, according to the
Nuclear Regulatory Commission. Temperatures were above normal in the South, Midwest and East last week, Commodity Weather Group LLC said.
“It’s quite likely that if you have nuclear power running at a higher level, you won’t see as much natural-gas generators running,” said
Peter Beutel, president of trading advisory company Cameron Hanover Inc. in
New Canaan, Connecticut.
The stockpile estimates ranged from increases of 54 billion to 73 billion cubic feet. The Energy Department’s weekly supply report is scheduled for release at 10:30 a.m. tomorrow in
Washington.
Nuclear power generation increased to 98,276 megawatts, or 97 percent of capacity, on July 11, the highest level since Dec. 26, according to the NRC and data compiled by Bloomberg. Three of the 104 U.S. reactors were offline.
Power plants use about 30 percent of U.S. gas supplies.
Supply Report
Gas storage levels increased 84 billion cubic feet to 2.611 trillion in the week ended July 8, the Energy Department reported last week. Stockpiles were 2 percent below the five- year average and 7.7 percent below year-earlier levels.
Marketed gas production will average 65.39 billion cubic feet a day this year, up 5.8 percent from 61.83 billion last year, according to the Energy Department.
Temperatures in New York last week were above normal, according to AccuWeather Inc. in
State College, Pennsylvania. The high was 93 degrees Fahrenheit (34 Celsius) on July 12, 9 degrees more than average.
Natural gas futures increased 34.1 cents, or 8.1 percent, to $4.546 per million British thermal units last week on the
New York Mercantile Exchange. Prices today gained 1.2 cents, or 0.3 percent, to $4.545 at 1:32 p.m. on the exchange.