Investing.com – Last week saw natural gas futures slump to a six-day low on Friday, as forecasts showed warmer-than-normal weather across most parts of the U.S. will moderate next week, reducing demand expectations for the fuel.
On the New York Mercantile Exchange, natural gas futures for delivery in August settled at USD4.399 per million British thermal units by close of trade on Friday, dropping 3.3% over the week.
It earlier fell to USD4.369 per million British thermal units, the lowest price since July 14.
The Commodity Weather Group said on Friday that it expected record high temperatures in the Eastern U.S. states to moderate next week, while seasonally normal weather was expected to return to the U.S. Midwest towards early August.
Natural gas traders monitor weather forecasts to determine whether temperatures may boost heating or cooling demand.
On Thursday, natural gas prices tumbled nearly 2.2% after the U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. rose by 60 billion cubic feet last week, above expectations for an increase of 58 billion cubic feet.
Stockpiles advanced by 55 billion cubic feet in the same week a year earlier, while the five-year average change for the week is a buildup of 67 billion cubic feet.
Total U.S. natural gas storage stood at 2.671 trillion cubic feet. Stocks were 213 billion cubic feet less than last year at this time and 59 billion cubic feet below the five-year average of 2.730 trillion cubic feet for this time of year.
Concerns over rising production levels also weighed on prices. Industry research group Baker Hughes said on Friday that the number of active rigs drilling for natural gas in the U.S. last week rose to 889 from 885, the highest amount in eleven weeks and the fourth gain in five weeks.
Natural gas traders closely watch the rig count to gauge future supply growth. A drop to the 800-rig-level would be necessary to begin to balance the market, according to Baker Hughes.
Elsewhere on the Nymex, light sweet crude oil futures for September delivery traded at a six-week high of USD99.78 a barrel by close of trade on Friday, gaining 2% over the week, while heating oil for August delivery added 0.3% on the week to trade at USD3.140 a gallon.
On the New York Mercantile Exchange, natural gas futures for delivery in August settled at USD4.399 per million British thermal units by close of trade on Friday, dropping 3.3% over the week.
It earlier fell to USD4.369 per million British thermal units, the lowest price since July 14.
The Commodity Weather Group said on Friday that it expected record high temperatures in the Eastern U.S. states to moderate next week, while seasonally normal weather was expected to return to the U.S. Midwest towards early August.
Natural gas traders monitor weather forecasts to determine whether temperatures may boost heating or cooling demand.
On Thursday, natural gas prices tumbled nearly 2.2% after the U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. rose by 60 billion cubic feet last week, above expectations for an increase of 58 billion cubic feet.
Stockpiles advanced by 55 billion cubic feet in the same week a year earlier, while the five-year average change for the week is a buildup of 67 billion cubic feet.
Total U.S. natural gas storage stood at 2.671 trillion cubic feet. Stocks were 213 billion cubic feet less than last year at this time and 59 billion cubic feet below the five-year average of 2.730 trillion cubic feet for this time of year.
Concerns over rising production levels also weighed on prices. Industry research group Baker Hughes said on Friday that the number of active rigs drilling for natural gas in the U.S. last week rose to 889 from 885, the highest amount in eleven weeks and the fourth gain in five weeks.
Natural gas traders closely watch the rig count to gauge future supply growth. A drop to the 800-rig-level would be necessary to begin to balance the market, according to Baker Hughes.
Elsewhere on the Nymex, light sweet crude oil futures for September delivery traded at a six-week high of USD99.78 a barrel by close of trade on Friday, gaining 2% over the week, while heating oil for August delivery added 0.3% on the week to trade at USD3.140 a gallon.