Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Natural gas futures remain sharply higher after U.S. supply data

Published 01/23/2014, 10:44 AM
Updated 01/23/2014, 10:44 AM
Natural gas futures hold gains after U.S. supply data

Natural gas futures hold gains after U.S. supply data

Investing.com - Natural gas futures remained sharply higher on Thursday, after data showed that U.S. natural gas supplies fell broadly in line with market expectations last week.

On the New York Mercantile Exchange, natural gas futures for delivery in February traded at USD4.847 per million British thermal units during U.S. morning trade, up 3.4%. Nymex gas prices traded at USD4.811 prior to the release of the supply data.

Nymex February gas futures rose by as much as 5.2% earlier in the day to hit a session high of USD4.945, the strongest level since June 9, 2011.

The February contract soared 5.82% on Wednesday to end at USD4.689. Natural gas futures were likely to find support at USD4.433 per million British thermal units, the low from January 22 and resistance at USD4.983, the high from June 9, 2011.

The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. in the week ended January 17 fell by 107 billion cubic feet, compared to expectations for a decline of 110 billion cubic feet.

Total U.S. natural gas storage stood at 2.423 trillion cubic feet. Stocks were 598 billion cubic feet less than last year at this time and 369 billion cubic feet below the five-year average of 2.792 trillion cubic feet for this time of year.

The report showed that in the East Region, stocks were 253 billion cubic feet below the five-year average, following net withdrawals of 67 billion cubic feet.

Stocks in the Producing Region were 75 billion cubic feet below the five-year average of 962 billion cubic feet after a net withdrawal of 25 billion cubic feet.

Meanwhile, market players continued to focus on weather forecasts to gauge the strength of demand for the fuel.

Updated weather forecasting models called for severe cold weather across the eastern U.S. during the next three-to-five days. The U.S. Northeast is a key gas-heating area. Bullish speculators are betting that colder weather will increase demand for the heating fuel.

The heating season from November through March is the peak demand period for U.S. gas consumption. Approximately 52% of U.S. households use natural gas for heating, according to the Energy Department.

Elsewhere on the NYMEX, light sweet crude oil futures for delivery in March rose 0.4% to trade at USD97.11 a barrel, while heating oil for February delivery added 0.8% to trade at USD3.0629 per gallon.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.