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Natural gas drops as U.S. heat wave wanes

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Investing.com -

Investing.com - Profit taking sent natural gas futures falling on Friday, fueled by weather reports calling for a break in a U.S. heat wave.

On the New York Mercantile Exchange, natural gas futures for delivery in September traded at $3.771 per million British thermal units during U.S. trading, down 3.46%. The commodity hit a session low of $3.765, and a high of $3.901.

The September contract settled up 1.96% on Thursday to end at $3.906 per million British thermal units.

Natural gas futures were likely to find support at $3.725 per million British thermal units, the low from July 28, and resistance at $4.020, Tuesday's high.

Above-normal temperatures should push out of portions of the Midwest and eastern U.S. and leave room for milder mercury readings, which sent natural gas prices falling on Friday.

Milder temperatures cut into the need for natural gas this time of year, as households and businesses throttle back on their air conditioning.

Investors continued to digest Thursday's supply report.

The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. in the week ending Aug. 8 rose by 78 billion cubic feet, below expectations for an increase of 83 billion cubic feet.

Inventories rose by 70 billion cubic feet in the same week a year earlier, while the five-year average change is a build of 45 billion cubic feet.

Injections of gas into storage have surpassed the five-year average for 17 consecutive weeks, alleviating concerns over tightening supplies.

Total U.S. natural gas storage stood at 2.467 trillion cubic feet. Stocks were 530 billion cubic feet less than last year at this time and 575 billion cubic feet below the five-year average of 3.042 trillion cubic feet for this time of year.

Elsewhere on the NYMEX, light sweet crude oil futures for delivery in September were up 1.37% at $96.89 a barrel, while heating oil for September delivery were up 0.98% at $2.8470 per gallon.

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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.

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