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 off the highs after storage data

Published 06/25/2015, 10:34 AM
Updated 06/25/2015, 10:34 AM
© Reuters.  U.S. natural gas futures trim gains after storage data

© Reuters. U.S. natural gas futures trim gains after storage data

Investing.com - Natural gas futures trimmed gains on Thursday, despite data showing that U.S. natural gas supplies rose less than expected last week.

Natural gas for delivery in August rose 2.4 cents, or 0.88%, on the New York Mercantile Exchange to trade at $2.806 per million British thermal units during U.S. morning hours. Prices were at around $2.846 prior to the release of the supply data.

A day earlier, natural gas prices fell to $2.733, the lowest level since June 9, before turning higher to end at $2.782, up 3.6 cents, or 1.31%. Futures were likely to find support at $2.733, the low from June 25, and resistance at $2.905, the high from June 18.

The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. in the week ended June 19 rose by 75 billion cubic feet, compared to expectations for an increase of 77 billion and following a build of 89 billion cubic feet in the preceding week.

Supplies rose by 110 billion cubic feet in the same week last year, while the five-year average change is an increase of 86 billion cubic feet.

Total U.S. natural gas storage stood at 2.508 trillion cubic feet as of last week. Stocks were 695 billion cubic feet higher than last year at this time and 35 billion cubic feet above the five-year average of 2.473 trillion cubic feet for this time of year.

Meanwhile, investors focused on near-term weather forecasts to gauge the strength of demand for the fuel.

Updated weather forecasting models called for higher-than-normal temperatures across most parts of the U.S. in the next three days. However, a cooler weather system from Canada was expected to push readings to near normal across much of Northeast and Midwest early next week.

Demand for natural gas tends to fluctuate in the summer based on hot weather and air conditioning use. Natural gas accounts for about a quarter of U.S. electricity generation.

Elsewhere on the Nymex, crude oil for delivery in August shed 60 cents, or 1%, to trade at $59.67 a barrel, while heating oil for July delivery declined 0.79% to trade at $1.861 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.