US Natgas Inventories Seen Peaking This Year At A Record 4.109 Tcf, Fourth Straight Record

Tuesday, May 08, 2012

U.S. natural gas inventories should end the stock-building season at an all-time high, but concerns that excess supply could exceed storage capacity and topple prices again has been tempered as utilities rush to switch from coal to gas to generate power.

With U.S. storage caverns already about 63 percent full early in the injection season, many experts polled by Reuters expect natural gas prices to test new lows this year.

"If the last marginal unit of gas doesn't have a place to go, that could cause some strong downward pressure on prices," said Gavin Roberts, analyst at Bentek Energy in Colorado.

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