Natural gas futures - Weekly outlook: June 3 - 7
Investing.com
Published Jun 02, 2013 09:29AM ET
Investing.com - Natural gas futures declined for the fourth consecutive session on Friday, hitting a two-week low, as sentiment on the fuel was dampened amid an uncertain demand outlook.
On the New York Mercantile Exchange, natural gas futures for delivery in July shed 0.9% on Friday to settle the week at USD3.987 per million British thermal units.
Earlier in the session, Nymex gas prices fell to a session low of USD3.983 per million British thermal units, the weakest level since May 17.
The July contract tumbled 6.9% on the week, the first weekly decline in three weeks.
Natural gas prices lost 3.7% on Thursday after a report from the U.S. Energy Information Administration showed natural gas supplies rose broadly in line with expectations last week.
The EIA data showed that natural gas storage in the U.S. rose by 88 billion cubic feet. Inventories rose by 72 billion cubic feet in the same week a year earlier, while the five-year average change for the week is a rise of 92 billion cubic feet.
Total U.S. natural gas storage stood at 2.141 trillion cubic feet as of last week, 4% below the five-year average for this time of year.
Early injection estimates for this week’s storage data range from 78 billion cubic feet to 95 billion cubic feet, compared to a 63 billion cubic feet increase during the same week a year earlier.
The five-year average for the week is a build of 92 billion cubic feet.
Meanwhile, an uncertain demand outlook also added to the selling pressure.
Weather forecasting models continued to point to above-normal temperatures across most of the U.S. over the next five days, before giving way to below-normal temperatures later in June.
Demand for natural gas tends to rise in the summer months as warmer temperatures increase the need for gas-fired electricity to power air conditioning.
Elsewhere in the energy complex, light sweet crude oil futures for July delivery settled at a one-month low of USD91.65 a barrel by close of trade on Friday, falling 2.35% on the week.
Meanwhile, heating oil for July delivery declined 2.5% over the week to settle at USD2.782 per gallon by close of trade Friday.
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Written By: Investing.com
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