Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

Natural gas futures rally 3% in early trade with supply data in focus

Published 04/10/2013, 10:06 AM
TTEF
-
CL
-
NG
-
NYF
-
FTNMX651010
-
Investing.com - Natural gas futures were sharply higher during U.S. morning hours on Wednesday, re-approaching a 20-month high as investors looked ahead to Thursday’s closely-watched U.S. supply data.

On the New York Mercantile Exchange, natural gas futures for delivery in May traded at USD4.138 per million British thermal units during U.S. morning trade, up 3% on the day.       

Nymex gas prices rose by as much as 3.2% earlier in the day to hit a session high of USD4.144 per million British thermal units. The May contract rallied to USD4.177 per million British thermal units on April 8.

Early withdrawal estimates range from 20 billion cubic feet to 36 billion cubic feet. Inventories increased by 11 billion cubic feet in the same week a year earlier, while the five-year average change for the week is a build of 15 billion cubic feet.

Total U.S. natural gas in storage stood at 1.687 trillion cubic feet as of last week, 32% lower than last year at this time and 2.1% below the five-year average.

Gas inventories had held above the five-year average since September 2011.

Nymex gas prices have risen sharply in recent weeks, gaining almost 25% since mid-February, boosted by calls for colder temperatures in major consuming regions across the U.S. that helped tighten the market.

Still, some analysts have warned that further gains may be limited with spring's low-demand shoulder season looming.

The heating season from November through March is the peak demand period for U.S. gas consumption. Nearly 50% of all U.S. households use gas for heating.

Gas use typically hits a seasonal low with spring's mild temperatures, before warmer weather increases demand for gas-fired electricity generation to power air conditioning.

Elsewhere on the NYMEX, light sweet crude oil futures for delivery in May fell 0.3% to trade at USD93.94 a barrel, while heating oil for May delivery was flat to trade at USD2.961 per gallon.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.