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Natural gas futures turn lower after bearish storage data

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Investing.com -

Investing.com - Natural gas futures turned lower on Thursday, after data showed that U.S. natural gas supplies rose more than expected last week.

On the New York Mercantile Exchange, natural gas for delivery in July shed 0.59%, or 2.8 cents, to trade at $4.613 per million British thermal units during U.S. morning hours. Futures traded at $4.663 prior to the release of the supply data.

Prices rose to a daily high of $4.688 per million British thermal units earlier, the most since May 8. Natural gas futures ended Wednesday's session up 0.24%, or 1.1 cents, to settle at $4.640.

Futures were likely to find support at $4.522 per million British thermal units, the low from June 2 and resistance at $4.754, the high from May 8.

The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. in the week ended May 30 rose by 119 billion cubic feet, above forecasts for an increase of 116 billion cubic feet.

Total U.S. natural gas storage stood at 1.499 trillion cubic feet. Stocks were 737 billion cubic feet less than last year at this time and 896 billion cubic feet below the five-year average of 2.395 trillion cubic feet for this time of year.

Producers would need to add approximately 2.5 trillion cubic feet to storage by November 1 to meet typical winter demand, analysts said.

Meanwhile, market players prepped for the arrival of summertime temperatures in the U.S., which should hike demand for air conditioning.

Updated weather-forecasting models called for above-normal temperatures to settle in across parts of the lower 48 U.S. states through the first week of June, which sent natural gas prices rising.

Demand for natural gas tends to rise in the summer months as warmer temperatures increase the need for gas-fired electricity to power air conditioning.

Elsewhere on the Nymex, U.S. crude oil for delivery in July fell 0.82%, or 84 cents, to trade at $101.80 a barrel, while heating oil for July delivery eased up 0.15% to trade at $2.852 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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