Investing.com - U.S. natural gas futures ended Friday's session
close to an eight-month low, as demand for the fuel was likely to
remain limited after meteorologists predicted mild summer weather
in much of the U.S.
On the New York Mercantile Exchange, natural gas for delivery in
August tumbled 1.72%, or 6.6 cents, on Friday to settle at $3.781
per million British thermal units by close of trade.
Natural gas futures fell to $3.744 on Thursday, the lowest since
On the week, Nymex
lost 4.3%, or 17.0 cents, the sixth consecutive weekly decline.
Futures were likely to find support at $3.741 per million
British thermal units, the low from November 26 and resistance at
$3.886, the high from July 24.
Natural gas prices have been under heavy selling pressure in
recent sessions after updated weather-forecasting models called for
cooler temperatures across most parts of the heavily-populated
Midwest and Northeast regions over the next ten days.
Demand for natural gas tends to fluctuate in the summer based on
hot weather and air conditioning use.
Prices rallied more than 2% on Thursday after the U.S. Energy
Information Administration said in its weekly report that natural
gas storage in the U.S. rose by 90 billion cubic feet, below
expectations for an increase of 96 billion cubic feet.
The five-year average change for the week is an increase of 46
billion cubic feet.
Total U.S. natural gas storage stood at 2.219 trillion cubic
feet as of last week, narrowing the deficit to the five-year
average to 23.5%, down from a record 54.7% at the end of March.
Data from the Commodities Futures Trading Commission released
Friday showed that hedge funds and money managers decreased their
bullish bets in natural gas futures in the week ending July 22.
Net longs totaled 27,748 contracts, down 26.2% from net longs of
37,617 in the previous week.
Elsewhere on the Nymex, crude oil for September delivery settled
at $102.09 a barrel by close of trade on Friday, up 0.13%, or 14
cents, on the week.
Meanwhile, heating oil for August delivery advanced 2.19% on the
week to settle at $2.912 per gallon by close of trade Friday.
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