| Commodities News
| Nov 21, 2012 08:59PM GMT |
Investing.com - Natural gas futures surged higher during U.S. afternoon trade on Wednesday, as traders turned bullish after the release of supply data.
On the New York Mercantile Exchange, natural gas futures for delivery in December traded at USD3.906 per million British thermal units during U.S. afternoon trade, soaring 1.94%.
Sparking the bullish buying, U.S. natural gas storage fell more-than-expected last month, official data showed on Wednesday.
In a report, Energy Information Administration said that U.S. Natural Gas Storage fell to a seasonally adjusted annual rate of -38B, from -18B in the preceding month.
Analysts had expected U.S. Natural Gas Storage to fall -24B last month.
The U.S. Energy Information Administration said last week that natural gas storage in the U.S. fell by 18 billion cubic feet 3.911 trillion. It was the earliest seasonal decline since 2007.
Stocks were 5.6% above the five-year average for the week. In March, after an exceptionally warm winter, stockpiles were approximately 60% above five-year levels.
Meanwhile, updated weather forecasts showed that warmer-than-normal temperatures will descend on the U.S. in the next three-to-five days, with mostly seasonally normal weather the following week.
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 January fell 1.2% to trade at USD88.19 a barrel, while heating oil for December delivery shed 0.4% to trade at USD3.062 per gallon.
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