Natural gas futures fall 2% after U.S. supply data
Investing.com
Published May 30, 2013 10:45AM ET
On the New York Mercantile Exchange, natural gas futures for delivery in July traded at USD4.111 per million British thermal units during U.S. morning trade, down 1.75% on the day.
Nymex natural gas prices fell by as much as 2% earlier in the day to hit a session low of USD4.086 per million British thermal units, the weakest level since May 21.
The July contract traded at USD4.161 prior to the release of the U.S. Energy Information Administration report.
The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. in the week ended May 24 rose by 88 billion cubic feet, broadly in line with market expectations.
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. Stocks were 664 billion cubic feet less than last year at this time and 88 billion cubic feet below the five-year average of 2.229 trillion cubic feet for this time of year.
The report showed that in the East Region, stocks were 110 billion cubic feet below the five-year average, following net injections of 53 billion cubic feet.
Stocks in the Producing Region were 25 billion cubic feet below the five-year average of 876 billion cubic feet after a net injection of 23 billion cubic feet.
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.
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 on the NYMEX, light sweet crude oil futures for delivery in July fell 0.9% to trade at USD92.30 a barrel, while heating oil for June delivery dropped 1.25% to trade at USD2.828 per gallon.
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Written By: Investing.com
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