Shutterstock photo
Markets

Natural gas drops on bearish U.S. supply report

Shutterstock photo

Shutterstock photo

Investing.com -

Investing.com - Natural gas prices dropped on Thursday after data showed that U.S. stockpiles surpassed the five-year average last week.

On the New York Mercantile Exchange, natural gas futures for delivery in October were down 1.76% at $3.943 per million British thermal units during U.S. trading. The commodity hit a session low of $3.905, and a high of $4.027.

The October contract settled up 0.45% on Tuesday to end at $4.013 per million British thermal units.

Natural gas futures were likely to find support at $3.786 per million British thermal units, last Friday's low, and resistance at $4.078, the high from Sept. 2.

The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. in the week ended Sept. 12 rose by 90 billion cubic feet, broadly in line with market expectations.

Inventories rose by 48 billion cubic feet in the same week a year earlier, while the five-year average change is a build of 71 billion cubic feet, a figure that sent prices dropping on Thursday.

Injections of gas into storage have surpassed the five-year average for 22 consecutive weeks, alleviating concerns over tightening supplies.

Total U.S. natural gas storage stood at 2.891 trillion cubic feet. Stocks were 401 billion cubic feet less than last year at this time and 444 billion cubic feet below the five-year average of 3.335 trillion cubic feet for this time of year.

Updated weather-forecasting models calling for mild temperatures across the eastern and northern U.S. pressured prices lower as well, as thermal power plants will burn less of the commodity to reduced use of air conditioning.

Elsewhere on the NYMEX, light sweet crude oil futures for delivery in November were down 1.15% at $92.13 a barrel, while heating oil for October delivery were down 1.39% at $2.7070 per gallon.

Investing.com offers an extensive set of professional tools for the financial markets.

Read more News on Investing.com and download the new Investing.com apps for Android and iOS!

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Other Topics

ForEx