Investing.com - Natural gas futures tumbled nearly 3% Friday to hit a three-week low, as a combination of concerns over bloated inventory levels and worries over a slowdown in near-term demand due to milder weather forecasts weighed on the heating fuel.
On the New York Mercantile Exchange, natural gas futures for delivery in December settled at USD3.509 per million British thermal units by close of trade Friday.
Earlier in the session, prices fell to a daily low of USD3.482 per million British thermal units, the cheapest level since October 18.
On the week, front-month natural gas prices lost 0.95%, the fourth consecutive weekly decline.
Natural gas futures came under heavy selling pressure after updated weather forecasts pointed to mild temperatures across most parts of the U.S. in the next six-to-ten days.
Bearish speculators are betting on the milder weather reducing early-winter demand for the heating fuel.
The Commodity Weather Group predicted normal or above-normal temperatures across most of the continental U.S. from November 14 through November 23.
Weather service provider AccuWeather echoed that sentiment, saying temperatures in the Northeast and Midwest, key gas-consuming regions, were expected to average above normal for the next few days.
The heating season from November through March is the peak demand period for U.S. gas consumption.
Concerns over bloated inventory levels also weighed. The U.S. Energy Information Administration said in its weekly supply report Thursday that natural gas storage in the U.S. rose by 21 billion cubic feet last week.
Last year, stocks rose by 48 billion cubic feet, while the average rise in the week over the previous five years was 36 billion cubic feet.
Total U.S. gas supplies stood at 3.929 trillion cubic feet, an all-time record that surpasses the previous peak of 3.852 trillion cubic feet reached last November.
Stocks are 2.9% above a year ago and 6.6% above the five-year average for the week.
Early injection estimates for this week’s storage data range from 15 billion cubic feet to a drawdown of 5 billion cubic feet.
Inventories rose by 20 billion cubic feet in the same week a year earlier, while the five-year average change for the week is an increase of 17 billion cubic feet, according to U.S. Energy Department data.
Elsewhere in the energy complex, light sweet crude oil futures for December delivery settled at USD86.06 a barrel by close of trade on Friday, adding 1.4% on the week.
Heating oil for December delivery advanced 1.6% over the week to settle at USD3.007 per gallon by close of trade Friday.
On the New York Mercantile Exchange, natural gas futures for delivery in December settled at USD3.509 per million British thermal units by close of trade Friday.
Earlier in the session, prices fell to a daily low of USD3.482 per million British thermal units, the cheapest level since October 18.
On the week, front-month natural gas prices lost 0.95%, the fourth consecutive weekly decline.
Natural gas futures came under heavy selling pressure after updated weather forecasts pointed to mild temperatures across most parts of the U.S. in the next six-to-ten days.
Bearish speculators are betting on the milder weather reducing early-winter demand for the heating fuel.
The Commodity Weather Group predicted normal or above-normal temperatures across most of the continental U.S. from November 14 through November 23.
Weather service provider AccuWeather echoed that sentiment, saying temperatures in the Northeast and Midwest, key gas-consuming regions, were expected to average above normal for the next few days.
The heating season from November through March is the peak demand period for U.S. gas consumption.
Concerns over bloated inventory levels also weighed. The U.S. Energy Information Administration said in its weekly supply report Thursday that natural gas storage in the U.S. rose by 21 billion cubic feet last week.
Last year, stocks rose by 48 billion cubic feet, while the average rise in the week over the previous five years was 36 billion cubic feet.
Total U.S. gas supplies stood at 3.929 trillion cubic feet, an all-time record that surpasses the previous peak of 3.852 trillion cubic feet reached last November.
Stocks are 2.9% above a year ago and 6.6% above the five-year average for the week.
Early injection estimates for this week’s storage data range from 15 billion cubic feet to a drawdown of 5 billion cubic feet.
Inventories rose by 20 billion cubic feet in the same week a year earlier, while the five-year average change for the week is an increase of 17 billion cubic feet, according to U.S. Energy Department data.
Elsewhere in the energy complex, light sweet crude oil futures for December delivery settled at USD86.06 a barrel by close of trade on Friday, adding 1.4% on the week.
Heating oil for December delivery advanced 1.6% over the week to settle at USD3.007 per gallon by close of trade Friday.