Natural gas rockets higher on supply

Natural gas rockets higher on supply  | Sep 27, 2012 03:39PM ET

Natural gas rockets higher on supply - Natural gas future pushed higher during U.S. afternoon trade Thursday after a report from the U.S. Energy Information Administration revealed U.S. gas supplies rose more-than-expected last week.
On the New York Mercantile Exchange, natural gas futures for delivery in November traded at USD3.284 per million British thermal units during U.S. afternoon trade, adding 2.16%.       

Sparking the rally, the U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. in the week ended September 21 rose by 80 billion cubic feet, just above market expectations for an increase of 76 billion cubic feet.

Inventories rose by 89 billion cubic feet in the same week a year earlier, while the five-year average change for the week is an increase of 73 billion cubic feet, according to U.S. Energy Department data.

Total U.S. natural gas storage stood at 3.576 trillion cubic feet as of last week. Stocks were 296 billion cubic feet higher than last year at this time and 282 billion cubic feet above the five-year average of 3.294 trillion cubic feet for this time of year.

Inventory did not top the 3.4-trillion cubic feet level in 2011 until October 5, with stocks peaking at a record 3.852 trillion cubic feet in November of last year.

The report showed that in the East Region, stocks were 75 billion cubic feet above the five-year average, following a net injection of 46 billion cubic feet. 

Stocks in the Producing Region were 159 billion cubic feet above the five-year average of 994 billion cubic feet, after a net injection of 29 billion cubic feet.

Market analysts have warned that without strong demand through the early-Autumn shoulder season, gas inventories will reach the limits of available capacity later this year. 

Updated weather forecasts predicted normal or above-normal temperatures for most of the country into early October, dampening early-Autumn demand.

Natural gas demand typically rises in the summer as air-conditioning use boosts utility demand, then sinks in the fall as demand weakens ahead of the peak winter heating season. 

Elsewhere on the NYMEX, light sweet crude oil futures for delivery in November jumped 2.60% to trade at USD92.31 a barrel.


Related News

Latest comments

Add a Comment
Please wait a minute before you try to comment again.
Write a reply...
Please wait a minute before you try to comment again.

Fusion Media will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible. Currency trading on margin involves high risk, and is not suitable for all investors. Trading or investing in cryptocurrencies carries with it potential risks. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Cryptocurrencies are not suitable for all investors. Before deciding to trade foreign exchange or any other financial instrument or cryptocurrencies you should carefully consider your investment objectives, level of experience, and risk appetite.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures), Forex and cryptocurrencies prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn’t bear any responsibility for any trading losses you might incur as a result of using this data.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

English (UK) English (India) English (Canada) English (Australia) English (South Africa) Deutsch Español (España) Español (México) Français Italiano Nederlands Português (Portugal) Polski Português (Brasil) Русский Türkçe ‏العربية‏ Ελληνικά Svenska Suomi עברית 日本語 한국어 中文 香港 Bahasa Indonesia Bahasa Melayu ไทย Tiếng Việt
Sign out
Are you sure you want to sign out?
Saving Changes