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Natural gas futures off the highs after storage data

Published 08/07/2014, 11:10 AM
Natural gas futures pare gains after weekly supply data
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Investing.com - Natural gas futures trimmed gains on Thursday, after data showed that U.S. natural gas supplies rose more than the five-year average last week.

On the New York Mercantile Exchange, natural gas for delivery in September inched up 0.11%, or 0.4 cents, to trade at $3.938 per million British thermal units during U.S. morning hours. Futures traded at $3.972 prior to the release of the supply data.

A day earlier, natural gas futures rose 0.92%, or 3.6 cents, to settle at $3.933 as weather patterns called for warmer summer temperatures across much of the U.S. later this week.

Futures were likely to find support at $3.826 per million British thermal units, the low from August 5 and resistance at $4.111, the high from July 17.

The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. in the week ended August 1 rose by 82 billion cubic feet, below expectations for an increase of 84 billion cubic feet.

Inventories rose by 90 billion cubic feet in the same week a year earlier, while the five-year average change is a build of 49 billion cubic feet.

Injections of gas into storage have surpassed the five-year average for 16 consecutive weeks, alleviating concerns over tightening supplies.

Total U.S. natural gas storage stood at 2.389 trillion cubic feet. Stocks were 538 billion cubic feet less than last year at this time and 608 billion cubic feet below the five-year average of 2.948 trillion cubic feet for this time of year.

Natural gas prices have been well-supported in recent sessions as weather patterns called for warmer summer temperatures across much of the U.S. later this week.

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 September dipped 0.11%, or 11 cents, to trade at $96.81 a barrel, while heating oil for September delivery added 0.19% to trade at $2.881 per gallon.

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