Investing.com - Natural gas futures tumbled more than 4% Friday, as a combination of concerns over bloated inventory levels and worries over a slowdown in near-term demand in the aftermath of Hurricane Sandy weighed on the commodity.
On the New York Mercantile Exchange, natural gas futures for delivery in December settled at USD3.542 per million British thermal units by close of trade Friday.
Earlier in the session, prices fell to a daily low of USD3.533 per million British thermal units, the cheapest level since October 18.
On the week, front-month natural gas prices tumbled 5.7%, the third consecutive weekly decline.
The U.S. Energy Information Administration said in its weekly supply report Thursday that natural gas storage in the U.S. rose by 65 billion cubic feet last week.
Last year, stocks rose by 82 billion cubic feet, while the average rise in the week over the previous five years was 57 billion cubic feet.
Total U.S. gas supplies stood at 3.908 trillion cubic feet, an all-time record that surpasses the previous peak of 3.852 trillion cubic feet reached last November. Stocks are 3.6% above a year ago and 7.1% above the five-year average for the week.
Early injection estimates for this week’s storage data range from 15 billion cubic feet to 65 billion cubic feet, compared to last year's build of 48 billion cubic feet. The five-year average change for the week is an increase of 36 billion cubic feet.
The drop in natural gas prices also reflected concerns about demand lost in the Northeast because of Hurricane Sandy, as widespread power outages across the region left millions without electricity.
Power industry officials have said it could take a week or more to restore power throughout the region.
In August 2011, Hurricane Irene caused lengthy power outages in more than a dozen states along the East Coast, curbing power consumption from homes and industrial operations.
Meanwhile, weather forecasts for late next week turned milder, further weighing on future heating demand prospects.
Private forecaster MDA EarthSat said Friday that warmer air was expected to move into the Midwest in the next six-to-ten days, before shifting to the Northeast.
From a technical standpoint, natural gas prices could see further losses in the near-term after settling below the key USD3.60-support level on Friday, painting bearish chart signals.
Natural gas futures often reach a seasonal low in October, when mild weather reduces demand, before recovering in the winter, when heating-fuel use peaks.
The heating season from November through March is the peak demand period for U.S. gas consumption.
Elsewhere in the energy complex, light sweet crude oil futures for December delivery settled at USD84.83 a barrel by close of trade on Friday, losing 2.15% on the week.
Heating oil for December delivery dropped 3.9% over the week to settle at USD2.959 per gallon by close of trade Friday, the lowest level since August 7.
On the New York Mercantile Exchange, natural gas futures for delivery in December settled at USD3.542 per million British thermal units by close of trade Friday.
Earlier in the session, prices fell to a daily low of USD3.533 per million British thermal units, the cheapest level since October 18.
On the week, front-month natural gas prices tumbled 5.7%, the third consecutive weekly decline.
The U.S. Energy Information Administration said in its weekly supply report Thursday that natural gas storage in the U.S. rose by 65 billion cubic feet last week.
Last year, stocks rose by 82 billion cubic feet, while the average rise in the week over the previous five years was 57 billion cubic feet.
Total U.S. gas supplies stood at 3.908 trillion cubic feet, an all-time record that surpasses the previous peak of 3.852 trillion cubic feet reached last November. Stocks are 3.6% above a year ago and 7.1% above the five-year average for the week.
Early injection estimates for this week’s storage data range from 15 billion cubic feet to 65 billion cubic feet, compared to last year's build of 48 billion cubic feet. The five-year average change for the week is an increase of 36 billion cubic feet.
The drop in natural gas prices also reflected concerns about demand lost in the Northeast because of Hurricane Sandy, as widespread power outages across the region left millions without electricity.
Power industry officials have said it could take a week or more to restore power throughout the region.
In August 2011, Hurricane Irene caused lengthy power outages in more than a dozen states along the East Coast, curbing power consumption from homes and industrial operations.
Meanwhile, weather forecasts for late next week turned milder, further weighing on future heating demand prospects.
Private forecaster MDA EarthSat said Friday that warmer air was expected to move into the Midwest in the next six-to-ten days, before shifting to the Northeast.
From a technical standpoint, natural gas prices could see further losses in the near-term after settling below the key USD3.60-support level on Friday, painting bearish chart signals.
Natural gas futures often reach a seasonal low in October, when mild weather reduces demand, before recovering in the winter, when heating-fuel use peaks.
The heating season from November through March is the peak demand period for U.S. gas consumption.
Elsewhere in the energy complex, light sweet crude oil futures for December delivery settled at USD84.83 a barrel by close of trade on Friday, losing 2.15% on the week.
Heating oil for December delivery dropped 3.9% over the week to settle at USD2.959 per gallon by close of trade Friday, the lowest level since August 7.