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Natural gas futures extend losses after bearish supply report

Published 05/01/2014, 10:35 AM
Natural gas futures add to losses after bearish supply data
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Investing.com - Natural gas futures extended losses 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 June last traded at $4.748 during U.S. morning hours, down 1.4%, or 6.7 cents. Futures traded at $4.783 prior to the release of the supply data.

Natural gas fell to a session low of $4.725 per million British thermal units earlier in the session. The June contract lost 0.33%, or 1.5 cents, on Wednesday to settle at $4.815 per million British thermal units.

Futures were likely to find support at $4.648 per million British thermal units, the low from April 28 and resistance at $4.851, the high from April 30.

The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. in the week ended April 25 rose by 82 billion cubic feet, above forecasts for an increase of 75 billion cubic feet.

The five-year average gain for the period is 58 billion cubic feet.

Total U.S. natural gas storage stood at 981 billion cubic feet. Stocks were 790 billion cubic feet less than last year at this time and 984 billion cubic feet below the five-year average of 1.965 trillion cubic feet for this time of year.

The report showed that in the East Region, stocks were 466 billion cubic feet below the five-year average, following net injections of 34 billion cubic feet.

Stocks in the Producing Region were 396 billion cubic feet below the five-year average of 824 billion cubic feet after a net injection of 35 billion cubic feet.

Meanwhile, updated weather forecasting models continued to call for slightly cooler than normal temperatures over the next 15 days.

Spring and fall see the weakest demand for natural gas in the U.S, as the absence of extreme temperatures curbs demand for heating and air conditioning.

Approximately 52% of U.S. households use natural gas for heating, according to the Energy Department.

Elsewhere on the Nymex, crude oil for delivery in June fell 0.58%, or 58 cents to trade at $99.16 a barrel, while heating oil for June delivery lost 1.08% to trade at $2.896 per gallon.

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