Natural gas prices fall on supply data, mild weather forecasts
Published Sep 27, 2013 12:01PM ET
On the New York Mercantile Exchange, natural gas futures for delivery in November traded at USD3.547 per million British thermal units during U.S. trading, down 0.57%.
The November contract settled up 0.59% at USD3.567 per million British thermal units on Thursday.
The commodity hit a session low of USD3.522 and a high of USD3.590.
The Energy Information Administration on Thursday reported that inventories rose 87 billion cubic feet in the week ending Sept. 20 to hit 3.386 trillion, the biggest increase since Aug. 2.
Analyst were expecting the figure to rise by 76 billion cubic feet, and the numbers sent prices falling in early U.S. trading.
Stocks were 179 billion cubic feet less than last year at this time and 30 billion cubic feet above the 5-year average of 3.356 trillion cubic feet.
In the East Region, stocks were 115 billion cubic below the 5-year average following net injections of 54 billion cubic feet.
Stocks in the Producing Region were 95 billion cubic feet above the 5-year average of 1.030 trillion cubic feet after a net injection of 25 billion cubic feet.
Stocks in the West Region were 50 billion cubic feet above the 5-year average after a net addition of 8 billion cubic feet. At 3.386 trillion cubic feet, total working gas is within the 5-year historical range.
Elsewhere, forecasts for mild temperatures over much of the U.S. weighed on prices as well.
Demand for natural gas tends to wane at the country's thermal power plants as temperatures moderate, as homes and businesses throttle back on their air conditioners.
Hot or cold temperatures tend to boost demand for the commodity.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in November were up 0.28% and trading at USD103.32 a barrel, while heating oil for November delivery were down 0.20% and trading at USD2.9933 per gallon.
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Written By: Investing.com
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