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Natural gas prices fall on bearish supply report, weather forecast

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Investing.com -

Investing.com - Natural gas futures carried Thursday's data-driven losses into Friday as investors priced in a bearish supply report into trading, while weather forecasts calling for a break in a heat wave also pushed down prices.

On the New York Mercantile Exchange, nmatural gas futures for delivery in July traded at $4.536 per million British thermal units during U.S. trading, down 1.06%. The commodity hit a session high of $4.614 and a low of $4.520.

The July contract settled down 1.61% on Wednesday to end at $4.584per million British thermal units.

Natural gas futures were likely to find support at $4.504 per million British thermal units, the low from June 11, and resistance at $4.773, Wednesday's high.

The U.S. Energy Information Administration reported Thursday that natural gas storage in the U.S. in the week ending June 13 rose by 113 billion cubic feet, above forecasts for an increase of 110 billion cubic feet.

Stockpiles increased by 92 billion cubic feet in the same week a year earlier, while the five-year average build for the week is 87 billion.

Total U.S. natural gas storage stood at 1.719 trillion cubic feet. Stocks were 706 billion cubic feet less than last year at this time and 851 billion cubic feet below the five-year average of 2.570 trillion cubic feet for this time of year.

Producers would need to add approximately 2.6 trillion cubic feet to storage by November 1 to meet typical winter demand, analysts have said.

Meanwhile, updated weather-forecasting models called for a break in a heat wave across portions of the central U.S., which pressured prices lower.

Still, the southern U.S. will remain warm, which prevented the commodity from falling too far.

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, light sweet crude oil futures for delivery in August were up 0.43% at $106.51 a barrel, while heating oil for July delivery were down 0.17% at $3.0473 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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