Investing.com – Natural gas futures fell sharply on Friday, paring a weekly gain as mild weather forecasts for the eastern U.S. states was expected to limit demand, while receding fears over a disruption to supplies in the Gulf of Mexico also weighed.
On the New York Mercantile Exchange, natural gas futures for delivery in October settled at USD3.913 per million British thermal units by close of trade on Friday, gaining 0.89% over the week.
Natural gas futures tumbled nearly 1.8% on Friday after the U.S. National Weather Service’s six-to-ten day weather forecast showed that temperatures in the eastern half of the U.S. will be cooling during the upcoming week.
Natural gas prices came under further pressure after the U.S. National Hurricane Center said that Tropical Storm Nate was moving towards the western Mexican coast, away from the Gulf’s producing region.
In an advisory released Friday, the NHS added that Tropical Storm Maria was moving northwest in the Caribbean, towards the open Atlantic, while Hurricane Katia was located over open water between Bermuda and Nova Scotia.
“As of right now, the risks to production in the northern Gulf of Mexico are pretty low given the changes in Nate’s track,” said Matt Rogers, president of Commodity Weather Group.
Natural gas traders track tropical storm activity in the event it disrupts production in the Gulf of Mexico, which is home to 10% of U.S. natural gas production.
Major natural gas and oil producers, including Exxon-Mobil and British Petroleum continued to restore production in the Gulf shut due to damage from Tropical Storm Lee.
Approximately 4% natural gas output remained shut on Friday, according to the U.S. Bureau of Ocean Energy Management, compared to 41.6% of shut-in production on Tuesday and 18.1% on Wednesday.
Natural gas prices were boosted on Thursday after the U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. rose by 64 billion cubic feet last week, broadly in line with expectations.
Total U.S. natural gas storage stood at 3.025 trillion cubic feet. Stocks were 131 billion cubic feet less than last year at this time and 60 billion cubic feet below the five-year average of 3.085 trillion cubic feet for this time of year.
Elsewhere on the Nymex, light sweet crude oil futures for October delivery traded at USD87.07 a barrel by close of trade on Friday, gaining 0.67% over the week, while heating oil for October delivery edged 0.53% lower on the week to trade at USD2.985 a gallon by close of trade.
On the New York Mercantile Exchange, natural gas futures for delivery in October settled at USD3.913 per million British thermal units by close of trade on Friday, gaining 0.89% over the week.
Natural gas futures tumbled nearly 1.8% on Friday after the U.S. National Weather Service’s six-to-ten day weather forecast showed that temperatures in the eastern half of the U.S. will be cooling during the upcoming week.
Natural gas prices came under further pressure after the U.S. National Hurricane Center said that Tropical Storm Nate was moving towards the western Mexican coast, away from the Gulf’s producing region.
In an advisory released Friday, the NHS added that Tropical Storm Maria was moving northwest in the Caribbean, towards the open Atlantic, while Hurricane Katia was located over open water between Bermuda and Nova Scotia.
“As of right now, the risks to production in the northern Gulf of Mexico are pretty low given the changes in Nate’s track,” said Matt Rogers, president of Commodity Weather Group.
Natural gas traders track tropical storm activity in the event it disrupts production in the Gulf of Mexico, which is home to 10% of U.S. natural gas production.
Major natural gas and oil producers, including Exxon-Mobil and British Petroleum continued to restore production in the Gulf shut due to damage from Tropical Storm Lee.
Approximately 4% natural gas output remained shut on Friday, according to the U.S. Bureau of Ocean Energy Management, compared to 41.6% of shut-in production on Tuesday and 18.1% on Wednesday.
Natural gas prices were boosted on Thursday after the U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. rose by 64 billion cubic feet last week, broadly in line with expectations.
Total U.S. natural gas storage stood at 3.025 trillion cubic feet. Stocks were 131 billion cubic feet less than last year at this time and 60 billion cubic feet below the five-year average of 3.085 trillion cubic feet for this time of year.
Elsewhere on the Nymex, light sweet crude oil futures for October delivery traded at USD87.07 a barrel by close of trade on Friday, gaining 0.67% over the week, while heating oil for October delivery edged 0.53% lower on the week to trade at USD2.985 a gallon by close of trade.