Natural gas futures extend losses after U.S. storage data disappoints
Investing.com
Published Feb 04, 2016 10:34AM ET
Natural gas futures extend losses after U.S. storage data
Investing.com - U.S. natural gas futures were sharply lower on Thursday, extending losses after data showed U.S. natural gas supplies in storage fell less than expected last week.
Natural gas for delivery in March on the New York Mercantile Exchange tumbled 4.5 cents, or 2.21%, to trade at $1.993 per million British thermal units by 14:35 GMT, or 9:35AM ET. Prices were at around $1.996 prior to the release of the supply data.
The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. in the week ended January 29 fell by 152 billion cubic feet, compared to expectations for a decline of 158 billion.
That compares with draws of 211 billion cubic feet in the prior week, 115 billion cubic feet in the same week last year and a five-year average of 178 billion.
Total U.S. natural gas storage stood at 2.934 trillion cubic feet, 16.7% higher than levels at this time a year ago and 15.1% above the five-year average for this time of year.
Natural gas is down 13% so far this week as milder weather forecast for the last eight weeks of the U.S. November-March winter heating season dampened demand hopes.
Bearish speculators are betting on the mild winter weather to reduce demand for the heating fuel. The heating season from November through March is the peak demand period for U.S. gas consumption.
Prices sank to $1.684 in mid-December, a level not seen in almost 17 years, as an unusually mild start to winter due to the El Niño weather phenomenon limited the amount of heating days.
Elsewhere on the Nymex, crude oil for delivery in March rose $1.08, or 3.33%, to trade at $33.36 a barrel, while heating oil for March delivery rallied 2.96% to trade at $1.110 per gallon.
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Written By: Investing.com
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