Natural gas dips on profit taking, weather forecasts support
Published Jun 13, 2014 02:00PM ET
Natural gas prices fall as investors price in bullish supply report
Investing.com - Natural gas futures edged lower on Friday after investors locked in gains from Thursday's bullish supply report and sold the commodity for profits.
On the New York Mercantile Exchange, natural gas futures for delivery in July traded at $4.756 per million British thermal units during U.S. trading, down 0.14%. The commodity hit a session high of $4.791 and a low of $4.717.
The July contract settled up 5.63% on Thursday to end at $4.762 per million British thermal units.
Natural gas futures were likely to find support at $4.504 per million British thermal units, Wednesday's low, and resistance at $4.827, the high from May 7.
The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. in the week ended June 6 rose by 107 billion cubic feet, below forecasts for an increase of 110 billion cubic feet.
Total U.S. natural gas storage stood at 1.606 trillion cubic feet. Stocks were 727 billion cubic feet less than last year at this time and 877 billion cubic feet below the five-year average of 2.483 trillion cubic feet for this time of year.
Producers would need to add approximately 2.5 trillion cubic feet to storage by November 1 to meet typical winter demand, analysts have said.
Thursday's report sparked a rally and sent natural gas prices ripe for profit taking, though weather forecasts prevented prices from falling too far.
Natgasweather.com reported earlier warm weather will settle over the eastern U.S. next week, with highs approaching the 90s all the way up to the northeastern coast.
The southern U.S. will see hot and humid temperatures, which should prompt households to crank up their air conditioning and send thermal power producers burning more natural gas to meet demand.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in July were up 0.34% at $106.89 a barrel, while heating oil for July delivery were up 0.03% at $2.9903 per gallon.
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Written By: Investing.com
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