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Natural gas futures slump to 6-month low after storage data

Published 07/10/2014, 10:50 AM
Updated 07/10/2014, 10:50 AM
Natural gas futures hit 6-month low after weekly supply report

Natural gas futures hit 6-month low after weekly supply report

Investing.com - Natural gas futures fell to a six-month low on Thursday, after data showed that U.S. natural gas supplies rose more than expected last week.

On the New York Mercantile Exchange, natural gas for delivery in August fell to a session low of $4.118 per million British thermal units, the weakest level since January 13, before trimming losses to last trade at $4.143 during U.S. morning hours, down 0.66%, or 2.8 cents.

Futures traded at $4.184 prior to the release of the supply data.

Natural gas futures ended Wednesday’s session down 0.81%, or 3.4 cents, to settle at $4.170 after updated weather-forecasting models pointed to cooler summer weather, which was likely to dampen demand for the cooling fuel.

Futures were likely to find support at $3.953 per million British thermal units, the low from January 10 and resistance at $4.238, the high from July 8.

The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. in the week ended July 4 rose by 93 billion cubic feet, above expectations for an increase of 92 billion cubic feet.

The five-year average change for the week is an increase of 72 billion cubic feet.

Total U.S. natural gas storage stood at 2.022 trillion cubic feet. Stocks were 653 billion cubic feet less than last year at this time and 769 billion cubic feet below the five-year average of 2.791 trillion cubic feet for this time of year.

Meanwhile, updated weather-forecasting models called for cooler temperatures across most parts of the heavily-populated Midwest and Northeast regions over the next five days.

Demand for natural gas tends to fluctuate in the summer based on hot weather and air conditioning use.

Elsewhere on the Nymex, crude oil for delivery in August dipped 0.19%, or 20 cents, to trade at $102.10 a barrel, while heating oil for August delivery inched up 0.32% to trade at $2.880 per gallon.

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