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Natural Gas falls as forecasts point to return of warmer weather

Published 04/19/2013, 01:32 PM
Updated 04/19/2013, 01:33 PM
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Investing.com - Natural gas futures moved lower in U.S. trading on Friday after weather forecasting services indicated warmer temperatures returning to a good portion of the U.S.

On the New York Mercantile Exchange, natural gas futures for delivery in May traded at USD4.393 per million British thermal units, down 0.19%.

The commodity hit a session low of USD4.364 and a high of USD4.421.

While parts of the central U.S. may see below-normal temperatures in the coming days, the West Coast, eastern half of the U.S. will see a warming trend, which sent natural gas prices falling on Friday.

Natural gas prices can be very sensitive to weather reports.

About half of U.S. households use gas for heating purposes, according to Energy Department data.

Profit taking also kept prices lower after investors locked in gains on Thursday's rally, the product of bullish supply data.

The U.S. Energy Information Administration said in its weekly report on Thursday that natural gas storage in the U.S. in the week ended April 12 rose by 31 billion cubic feet, below expectations for an increase of 34 billion cubic feet.

Inventories increased by 21 billion cubic feet in the same week a year earlier, while the five-year average change for the week represented a build of 39 billion cubic feet.

Typically this time of year, stockpiles begin to climb as milder spring temperatures curb demand for natural gas.

Total U.S. natural gas storage stood at 1.704 trillion cubic feet as of last week. Stocks were 794 billion cubic feet less than last year at this time and 74 billion cubic feet below the five-year average of 1.778 trillion cubic feet for this time of year.

In the East Region, stocks were 93 billion cubic feet below the five-year average, following net injections of 19 billion cubic feet.

Stocks in the Producing Region were 48 billion cubic feet below the five-year average of 751 billion cubic feet after a net injection of 13 billion cubic feet.

Elsewhere on the NYMEX, light sweet crude oil futures for delivery in June were up 0.11% and trading at USD88.10 a barrel, while heating oil futures for May delivery were up 0.28% at USD2.7870 per gallon.









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