Shutterstock photo
Markets

Natural gas prices drop on bearish supply data, weather forecasts

Shutterstock photo

Shutterstock photo

Investing.com - Natural gas prices dropped to five-month lows on Thursday after official data revealed that U.S. inventories rose more than expected last week.

On the New York Mercantile Exchange, natural gas futures for delivery in September traded at USD3.387per million British thermal units during U.S. afternoon trading, down 1.73%.

The September contract settled up 0.41%, at USD3.446 per million British thermal units on Wednesday.

The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. in the week ending July 26 rose by 59 billion cubic feet, above market expectations for an increase of 56 billion cubic feet.

Inventories rose by 28 billion cubic feet in the same week a year earlier, while the five-year average change for the week is a build of 47 billion cubic feet.

Total U.S. natural gas storage stood at 2.845 trillion cubic feet as of last week. Stocks were 368 billion cubic feet less than last year at this time and 34 billion cubic feet below the five-year average of 2.879 trillion cubic feet for this time of year.

The report showed that in the East Region, stocks were 119 billion cubic feet below the five-year average, following net injections of 44 billion cubic feet.

Stocks in the Producing Region were 55 billion cubic feet above the five-year average of 979 billion cubic feet after a net injection of 9 billion cubic feet.

Elsewhere, weather forecasts continued to call for normal to below-normal temperatures for portions of the eastern U.S. over the next week, which pressured prices down as well.

Milder summertime temperatures send prices falling on sentiments that demand for natural gas will decrease at the country's thermal power plants as fewer businesses and households crank up their air conditioning.

Elsewhere on the NYMEX, light sweet crude oil futures for delivery in September were up 2.53% and trading at USD107.69 a barrel, while heating oil futures for September delivery were up 1.18% at USD3.0909 per gallon.

Investing.com - Investing.com offers an extensive set of professional tools for the financial markets.

Read more News on Investing.com or Follow us on Twitter at @ InvestingCom

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.

Other Topics

ForEx