Natural Gas extends losses as supply data disappoints
Published Mar 22, 2013 01:46PM ET
On the New York Mercantile Exchange, natural gas futures for delivery in April traded at USD3.929 per million British thermal units, down 0.17%.
The commodity hit a session low of USD3.914 and a high of USD4.005.
The U.S. Energy Information Administration said in its weekly report on Thursday that natural gas storage in the U.S. in the week ended March 15 fell by 62 billion cubic feet, short of market expectations for a drop of 70 billion cubic feet.
Inventory withdrawals were flat in the same week a year earlier, while the five-year average change for the week is a decline of 26 billion cubic feet.
Total U.S. natural gas storage stood at 1.876 trillion cubic feet as of last week. Stocks were 502 billion cubic feet less than last year at this time and 162 billion cubic feet above the five-year average of 1.714 trillion cubic feet for this time of year.
The report showed that in the East Region, stocks were 21 billion cubic feet above the five-year average, following net withdrawals of 47 billion cubic feet.
Stocks in the Producing Region were 63 billion cubic feet above the five-year average of 691 billion cubic feet after a net withdrawal of 15 billion cubic feet.
The data wiped out earlier gains.
The commodity hit near 18-month highs this week on forecasts for temperatures to remain below normal for the coming days
In its five-day forecast, industry group MDA Weather Services predicted below-normal temperatures to stick around in the heavily populated eastern half of the U.S.
The heating season from November through March is the peak demand period for U.S. gas consumption. Nearly 50% of all U.S. households use gas for heating.
Still, prices began to edge lower on Friday on sentiment that after below-normal temperatures lingering over the eastern half of the U.S. will give way to springtime weather patterns that will remain firmly in place.
U.S. Elsewhere on the NYMEX, light sweet crude oil futures for delivery in May were up 0.57% and trading at USD92.98 a barrel, while heating oil futures for April delivery were down 0.66% at USD2.8771 per gallon.
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Written By: Investing.com
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