Investing.com - Natural gas futures ended Friday’s session lower, as market players continued to focus on near-term weather forecasts to gauge the strength of demand for the fuel.
On the New York Mercantile Exchange, natural gas futures for delivery in October fell 0.3% on Friday to settle the week at USD3.607 per million British thermal units.
Nymex gas prices rose 1% on Thursday to settle at USD3.618 per million British thermal units, the strongest level since July 26.
Despite Friday’s modest decline, natural gas prices rose 2.4% on the week, the third consecutive weekly advance.
Futures came under pressure on Friday after updated weather forecasting models pointed to cooler temperatures across most parts of the U.S. Northeast for the first week of September, weighing on near-term demand expectations.
Forecasts originally called for warmer-than-average weather during the period.
Demand for natural gas tends to fluctuate in the summer based on hot weather and air conditioning use.
Prices ended higher on Thursday, despite a bearish U.S. supply report.
The U.S. Energy Information Administration said that natural gas storage in the U.S. rose by 67 billion cubic feet last week, above market expectations for an increase of 63 billion cubic feet.
Inventories increased by 64 billion cubic feet in the same week a year earlier, while the five-year average change for the week is a build of 66 billion cubic feet.
Total U.S. natural gas storage stood at 3.130 trillion cubic feet as of last week, 1.5% above the five-year average but still 7% below last year's level.
Early injection estimates for this week’s storage data range from 45 billion cubic feet to 53 billion cubic feet, compared to a 33 billion cubic feet increase during the same week a year earlier.
The five-year average for the week is a build of 60 billion cubic feet.
Elsewhere in the energy complex, light sweet crude oil futures for October delivery settled at USD107.66 a barrel by close of trade on Friday, adding 1.2% on the week.
Meanwhile, heating oil for October delivery rose 1.2% on the week to settle at USD3.136 per gallon by close of trade Friday.
On the New York Mercantile Exchange, natural gas futures for delivery in October fell 0.3% on Friday to settle the week at USD3.607 per million British thermal units.
Nymex gas prices rose 1% on Thursday to settle at USD3.618 per million British thermal units, the strongest level since July 26.
Despite Friday’s modest decline, natural gas prices rose 2.4% on the week, the third consecutive weekly advance.
Futures came under pressure on Friday after updated weather forecasting models pointed to cooler temperatures across most parts of the U.S. Northeast for the first week of September, weighing on near-term demand expectations.
Forecasts originally called for warmer-than-average weather during the period.
Demand for natural gas tends to fluctuate in the summer based on hot weather and air conditioning use.
Prices ended higher on Thursday, despite a bearish U.S. supply report.
The U.S. Energy Information Administration said that natural gas storage in the U.S. rose by 67 billion cubic feet last week, above market expectations for an increase of 63 billion cubic feet.
Inventories increased by 64 billion cubic feet in the same week a year earlier, while the five-year average change for the week is a build of 66 billion cubic feet.
Total U.S. natural gas storage stood at 3.130 trillion cubic feet as of last week, 1.5% above the five-year average but still 7% below last year's level.
Early injection estimates for this week’s storage data range from 45 billion cubic feet to 53 billion cubic feet, compared to a 33 billion cubic feet increase during the same week a year earlier.
The five-year average for the week is a build of 60 billion cubic feet.
Elsewhere in the energy complex, light sweet crude oil futures for October delivery settled at USD107.66 a barrel by close of trade on Friday, adding 1.2% on the week.
Meanwhile, heating oil for October delivery rose 1.2% on the week to settle at USD3.136 per gallon by close of trade Friday.