Natural gas comes off lows with supplies in focus
Published Jul 09, 2014 12:15PM ET
Natural gas rises on weather forecasts, though gains remain cautious
Investing.com - Natural gas futures came off session lows in Wednesday trading as investors weighed below-normal temperatures across the eastern U.S. and uncertainty over Thursday's weekly supply report.
Get The News You Want
On the New York Mercantile Exchange, natural gas futures for delivery in August traded at $4.215 per million British thermal units during U.S. trading, up 0.26%. The commodity hit a session high of $4.229 and a low of $4.168.
Get The News You Want
The August contract settled down 0.50% on Tuesday to end at $4.204 per million British thermal units.
Get The News You Want
Natural gas futures were likely to find support at $4.129 per million British thermal units, Tuesday's low, and resistance at $4.608, the high from June 26.
Get The News You Want
Gas prices fell in recent session amid weather forecasts calling for below-normal temperatures trekking across portions of the eastern U.S., which should curb demand for air conditioning.
Get The News You Want
Bargain hunters sent prices back into the positive territory, as typical summertime temperatures should return and hike demand for air conditioning, thus prompting thermal power producers to burn more of the commodity to meet demand.
Get The News You Want
In its July 9-15 forecast, Natgasweather.com reported that a Canadian weather system will bring showers, thunderstorms and cooler temperatures to the Midwest and New England in the coming days, while hot temperatures will prevail over the southern and western U.S.
Get The News You Want
"After the Midwest weather system departs, temperatures will again surge into the 80s and 90s over the northern U.S. as the ridge returns this weekend. Texas, the southern Plains, and the Southeast will also see temperatures warm several degrees above normal as upper 90s and 100s become widespread," Natgasweather.com reported.
Get The News You Want
Still, prices didn't surge, as "the return of northern U.S. heat will be short lived as another cooler-than-normal Canadian weather system will weaken the ridge and bring below-normal temperatures to the U.S. next week," Natgasweather.com reported.
Get The News You Want
Elsewhere, supplies remained in focus.
Get The News You Want
Thursday’s government report is expected to show that natural gas storage in the U.S. rose by 92 billion cubic feet in the week ended July 4. The five-year average increase for the period is 72 billion.
Get The News You Want
Natural gas stockpiles have grown by 100 or more billion cubic feet for eight consecutive weeks, a record streak since 1994.
Get The News You Want
Total U.S. natural gas storage stood at 1.929 trillion cubic feet as of last week, 25.7% below their level this time last year and 29.1% below the five-year average.
Get The News You Want
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in August were down 1.01% at $102.36 a barrel, while heating oil for August delivery were down 0.19% at $2.8682 per gallon.
Get The News You Want
Get The News You Want
Get The News You Want
Get The News You Want
Get The News You Want
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.