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Natural gas futures turn higher after U.S. supply data

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Forexpros - Natural gas futures erased losses on Thursday, rebounding from a three-day low after a report from the U.S. Energy Information Administration showed that natural gas inventories rose less-than-expected last week.

On the New York Mercantile Exchange, natural gas futures for September delivery traded at USD3.941 per million British thermal units during U.S. morning trade, jumping 1.42%.

It earlier rose as much as 1.81% to trade at a daily high of USD3.957 per million British thermal units.

The contract traded at USD3.878 prior to the release of the EIA data.

The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. in the week ended August 19 rose by 73 billion cubic feet, after increasing by 50 billion cubic feet in the preceding week.

Analysts had expected U.S. natural gas storage to rise by 75 billion cubic feet.

Stockpiles advanced by 38 billion cubic feet in the same week a year earlier, while the five-year average change for the week is a buildup of 55 billion cubic feet.

Total U.S. natural gas storage stood at 2.906 trillion cubic feet. Stocks were 140 billion cubic feet less than last year at this time and 55 billion cubic feet below the five-year average of 2.961 trillion cubic feet for this time of year.

The report showed that in the East Region, stocks were 112 billion cubic feet below the five-year average, following net injections of 58 billion cubic feet.

Stocks in the Producing Region were 55 billion cubic feet above the five-year average of 905 billion cubic feet, after a net injection of 7 billion cubic feet.

In the West Region, stocks were 2 billion cubic feet above the five-year average after a net addition of 8 billion cubic feet.

Natural gas futures fell to a three-day low of USD3.841 per million British thermal units as Hurricane Irene was expected to dodge the key Gulf of Mexico supply area.

Elsewhere on the Nymex, light sweet crude oil futures for delivery in October tumbled 2.35% to trade at USD83.17 a barrel, while heating oil for September delivery shed 0.72% to trade at USD2.941 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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