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Natural gas falls on U.S. supply report, weather forecasts

Published 10/16/2014, 01:46 PM
Updated 10/16/2014, 01:47 PM
U.S. supply report sends natural gas prices fallling

U.S. supply report sends natural gas prices fallling

Investing.com - Natural gas futures moved lower on Thursday on news of rising U.S. stockpiles, while forecasts for mild fall weather also pressured the commodity lower, though bottom fishing brought prices up from earlier lows.

On the New York Mercantile Exchange, natural gas futures for delivery in November were down 0.12% at $3.796 per million British thermal units during U.S. trading. The commodity hit a session low of $3.750, and a high of $3.832.

The November contract settled down 0.42% on Wednesday to end at $3.800 per million British thermal units.

Natural gas futures were likely to find support at $3.725 per million British thermal units, the low from July 28, and resistance at $3.955, Tuesday's high.

The Energy Information Administration reported earlier that working natural gas storage in the U.S. rose by 94 billion cubic feet in the week ending Oct. 10, outpacing market calls for a build of 91 billion cubic feet, which sent prices edging lower.

Total working gas in storage came to 3.299 trillion cubic feet.

Stocks were 344 billion cubic feet less than last year at this time and 362 billion cubic feet below the 5-year average of 3.661 trillion cubic feet.

In the East Region, stocks were 151 billion cubic feet below the 5-year average following net injections of 49 billion cubic feet.

Stocks in the Producing Region were 173 billion cubic feet below the 5-year average of 1.173 trillion cubic feet after a net injection of 35 billion cubic feet.

Stocks in the West Region were 37 billion cubic feet below the 5-year average after a net addition of 10 billion cubic feet.

At 3.299 trillion cubic feet, total working gas remains below the 5-year historical range.

Updated weather forecasting models continued to call for mild weather across much of the U.S., which should curb demand for heating somewhat, though bottom fishing brought the commodity off earlier lows, especially on reports that warm pockets in the southern U.S. could drive some demand for air conditioning.

Elsewhere on the NYMEX, light sweet crude oil futures for delivery in November were up 1.55% at $83.05 a barrel, while heating oil for November delivery were up 0.99% at $2.4830 per gallon.

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