We have updated our privacy policy and terms & conditions. Find out more here.
3
 

Natural gas futures - Weekly outlook: June 24 - 28

By Investing.comCommoditiesJun 23, 2013 02:38PM GMT Add a Comment
 
AA
+
-
Investing.com - Natural gas futures ended Friday’s session down sharply, as market players focused on rising inventory levels amid an uncertain demand outlook.

Natural gas futures - Weekly outlook: June 24 - 28
On the New York Mercantile Exchange, natural gas futures for delivery in July tumbled 1.9% on Friday to settle the week at USD3.793 per million British thermal units.

Earlier in the session, Nymex gas prices fell to a session low of USD3.766 per million British thermal units, the weakest level since June 17.

Despite Friday’s downbeat performance, the front-month July contract rose 1.3% on the week, the first weekly advance in four.

Sentiment on the commodity remained downbeat following Thursday’s bearish U.S. supply report, which showed that natural gas storage in the U.S. rose by 91 billion cubic feet, above market expectations for an increase of 90 billion.

Inventories rose by 63 billion cubic feet in the same week a year earlier, while the five-year average change for the week is a rise of 80 billion cubic feet.

Total U.S. natural gas storage stood 2.438 trillion cubic feet as of last week, 1.9% below the five-year average for this time of year.

Early injection estimates for this week’s storage data range from 75 billion cubic feet to 95 billion cubic feet, compared to a 58 billion cubic feet increase during the same week a year earlier.

The five-year average for the week is a build of 79 billion cubic feet.

Meanwhile, an uncertain demand outlook also weighed after weather forecasting models pointed to cooler temperatures across most of the U.S. over the next six-to-ten days.

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.  

Natural gas prices rose to a two-week high of USD3.982 per million British thermal units on Wednesday, as forecasts for warmer weather across key parts of the U.S. boosted near-term demand expectations for the fuel.  

Elsewhere in the energy complex, light sweet crude oil futures for August delivery settled at a three-week low of USD93.89 a barrel by close of trade on Friday, losing 4.3% on the week.

Meanwhile, heating oil for July delivery fell 4% over the week to settle at USD2.843 per gallon by close of trade Friday.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data .

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Related Articles

Add a Comment

 

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Total
 
 
 
Are you sure you want to delete this chart?
 
 
 
Are you sure you want to delete this chart?
 
 
 

Successfully Reported

Thank you. This comment has been flagged for a moderator.
_touchLoadingMsg