Investing.com – Natural gas futures eased off a five-week low on Friday, as the previous day’s sharp decline created bargain buying opportunities, while forecasts showing above-average weather in the U.S. next week also supported prices.
On the New York Mercantile Exchange, natural gas futures for delivery in July settled at USD4.241 per million British thermal units by close of trade on Friday, dropping 2.1% over the week.
Natural gas futures tumbled nearly 2.25% on Thursday, hitting USD4.153 per million British thermal units, the lowest price since May 20.
The U.S. Energy Information Administration said in its weekly report on Thursday that natural gas storage in the U.S. rose by 98 billion cubic feet last week, surpassing expectations for a buildup of 91 billion cubic feet.
Stocks rose by 81 billion cubic feet in the same week a year earlier, while the five-year average change for the week is an injection of 86 billion cubic feet.
The larger-than-expected increase pushed total U.S. natural gas stockpiles to 2.354 trillion cubic feet, narrowing a supply-deficit to 2.6% below the five-year average and 9.9% below 2010 levels.
However, the sharp decline triggered some bargain buying from traders reluctant to bet that prices would fall further amid a favorable demand outlook.
Industry weather group MDA Federal said on Friday that it expected unseasonably hot temperatures to return to the U.S. Great Lakes and mid-Atlantic region next week.
Meanwhile, the Commodity Weather Group said that temperatures in most Midwestern cities were likely to reach the mid-90s, while most southern U.S. states could see readings exceed 100 degrees Fahrenheit (37 Celsius) through July 2.
Demand for the fuel tends to rise in the summer as warmer-than-normal temperatures increase the need for electricity to power air conditioning.
Also Friday, industry research group Baker Hughes said that the number of active rigs drilling for natural gas in the U.S. last week rose to 873 from 870.
According to the group, a drop to the 800-to-850 rig range would be necessary to begin to balance the market.
Elsewhere, light sweet crude oil futures for August delivery traded at USD91.28 a barrel by close of trade on Friday, dropping 2.05% over the week, while heating oil for July delivery plunged 6.5% on the week to trade at a four-month low of USD2.784 a gallon.
On the New York Mercantile Exchange, natural gas futures for delivery in July settled at USD4.241 per million British thermal units by close of trade on Friday, dropping 2.1% over the week.
Natural gas futures tumbled nearly 2.25% on Thursday, hitting USD4.153 per million British thermal units, the lowest price since May 20.
The U.S. Energy Information Administration said in its weekly report on Thursday that natural gas storage in the U.S. rose by 98 billion cubic feet last week, surpassing expectations for a buildup of 91 billion cubic feet.
Stocks rose by 81 billion cubic feet in the same week a year earlier, while the five-year average change for the week is an injection of 86 billion cubic feet.
The larger-than-expected increase pushed total U.S. natural gas stockpiles to 2.354 trillion cubic feet, narrowing a supply-deficit to 2.6% below the five-year average and 9.9% below 2010 levels.
However, the sharp decline triggered some bargain buying from traders reluctant to bet that prices would fall further amid a favorable demand outlook.
Industry weather group MDA Federal said on Friday that it expected unseasonably hot temperatures to return to the U.S. Great Lakes and mid-Atlantic region next week.
Meanwhile, the Commodity Weather Group said that temperatures in most Midwestern cities were likely to reach the mid-90s, while most southern U.S. states could see readings exceed 100 degrees Fahrenheit (37 Celsius) through July 2.
Demand for the fuel tends to rise in the summer as warmer-than-normal temperatures increase the need for electricity to power air conditioning.
Also Friday, industry research group Baker Hughes said that the number of active rigs drilling for natural gas in the U.S. last week rose to 873 from 870.
According to the group, a drop to the 800-to-850 rig range would be necessary to begin to balance the market.
Elsewhere, light sweet crude oil futures for August delivery traded at USD91.28 a barrel by close of trade on Friday, dropping 2.05% over the week, while heating oil for July delivery plunged 6.5% on the week to trade at a four-month low of USD2.784 a gallon.