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Natural gas futures remain lower after U.S. supply data

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Investing.com - " Natural gas futures remained lower on Thursday, albeit off the worse levels of the session, after U.S. government data showed that natural gas supplies rose broadly in line with market expectations last week.

On the New York Mercantile Exchange, natural gas futures for delivery in December traded at USD3.585 per million British thermal units during U.S. morning trade, down 1%.

Futures traded at USD3.582 prior to the release of the U.S. Energy Information Administration report.

Nymex gas prices fell by as much as 1.55% earlier to hit a session low of USD3.564 per million British thermal units earlier immediately after the release of the data, the weakest level since October 24.

The December contract settled 0.25% lower at USD3.620 per million British thermal units on Wednesday.

Nymex gas futures were likely to find support at USD3.556 per million British thermal units, the low from October 24 and resistance at USD3.683, the high from October 29.

The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. in the week ended October 25 rose by 38 billion cubic feet, broadly in line with forecasts for an increase of 36 billion cubic feet.

Inventories rose by 66 billion cubic feet in the same week a year earlier, while the five-year average change for the week is a build of 57 billion cubic feet.

Total U.S. natural gas storage stood at 3.779 trillion cubic feet. Stocks were 120 billion cubic feet less than last year at this time and 58 billion cubic feet above the five-year average of 3.721 trillion cubic feet for this time of year.

The report showed that in the East Region, stocks were 91 billion cubic feet below the five-year average, following net injections of 17 billion cubic feet.

Stocks in the Producing Region were 102 billion cubic feet above the five-year average of 1.161 billion cubic feet after a net injection of 18 billion cubic feet.

Prices were lower ahead of the supply report as weather-forecasting models continued to predict that currently cool temperatures in the Midwest and Eastern U.S. will give way to largely mild temperatures over the next six-to-ten days.

Natural gas prices have closely tracked weather forecasts in recent weeks, as traders try to gauge the impact of shifting outlooks on early-winter heating demand.

Bearish speculators are betting on the warm weather reducing early-winter demand for the heating fuel. The heating season from November through March is the peak demand period for U.S. gas consumption.

Elsewhere on the NYMEX, light sweet crude oil futures for delivery in December shed 0.55% to trade at USD96.24 a barrel, while heating oil for December delivery dipped 0.7% to trade at USD2.956 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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