"January $3 puts were the most active options in electronic trading. They slid 0.1 cent to 1.3 cents per million Btu on volume of 1,135 at 3 p.m. Puts accounted for 54 percent of trading volume. Implied volatility for November at-the-money options was 29.33 percent at 3 p.m., compared with 30.07 percent yesterday.
U.S. inventories rose 87 billion cubic feet to 3.386 trillion in the week ended Sept. 20. The increase was the largest since Aug. 2. Analyst estimates compiled by Bloomberg predicted a gain of 79 billion.
“It’s a big number, no doubt,” said Teri Viswanath, director of commodities strategy at BNP Paribas SA in New York. “There is not a lot of demand. The current restocking under way is representative of a well-supplied market.”
The stockpile increase was bigger than the five-year average gain for the period of 75 billion cubic feet, EIA data show. A surplus to the five-year average widened to 0.9 percent from 0.5 percent the previous week. Supplies were 5 percent below year-earlier inventories, compared with 5.3 percent a week earlier.
“The weather forecast for the next two weeks is expected to be just right, above average, that is, in the northern half of the country,” which means neither heaters or air-conditioners will be called up for duty, John Kilduff, partner at Again Capital LLC and editor of the Energy OverView newsletter in New York, wrote today. “So, the demand picture remains quite weak.”
Temperatures will be above-normal from the East Coast through the Midwest and in the Southwest from Oct. 1-5 before giving way to more seasonal readings the following five days, said Commodity Weather Group LLC in Bethesda, Maryland.
The high in New York City on Oct. 1 may be 74 degrees Fahrenheit (23 Celsius), 5 above normal, then drop to the high 60s the following week, according to AccuWeather Inc. in State College, Pennsylvania.
U.S. gas production may rise 1.1 percent this year to a record 69.91 billion cubic feet a day, gaining for the sixth straight yea