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Natural gas falls on expectations for rising supplies

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Investing.com - " Natural gas prices fell on Friday amid concerns mild weather may have hampered demand over the past two weeks and left the country's stockpiles high.

A government shutdown left markets without weekly supply data, prompting investors to sell and await fresh market-moving data, though concerns persisted that the next report due out next week will be bearish.

On the New York Mercantile Exchange, natural gas futures for delivery in November traded at USD3.697 per million British thermal units during U.S. trading, down 1.61%.

The commodity hit a session low of USD3.685 and a high of USD3.767.

The November contract settled down 0.32% at USD3.757 per million British thermal units on Thursday.

Futures were likely to find support at USD3.482 per million British thermal units, the low from Oct. 4, and resistance at USD3.869, Wednesday's high.

Updated weather models continued to call for below-normal temperatures to hover over portions of the central and eastern U.S. in late October, though chilly forecasts were already priced into trading.

Concerns fall's mild temperatures have crimped demand sent prices falling.

Demand for natural gas tends to fall at the country's thermal power plants as temperatures moderate, as homes and businesses rely less on heating or air conditioning.

The U.S. Energy Information Administration halted the release of its weekly natural gas inventory data due to the U.S. government shutdown.

Next week, the government will release two reports, with data for the week ending Oct. 11 publishing on Oct. 22, and data for the week ending Oct. 18 hitting the wire on Oct. 24 as normal.

Fears mild weather will show healthy inventory levels sent prices falling on Friday.

Total U.S. natural gas storage stood at 3.577 trillion cubic feet as Oct. 4, 3.7% below last year's unusually high level but 1.6% above the five-year average for this time of year.

Elsewhere on the NYMEX, light sweet crude oil futures for delivery in November were up 0.29% and trading at USD100.96 a barrel, while heating oil for November delivery were up 0.96% and trading at USD3.0187 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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