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Natural gas futures retreat from 3-week low after U.S. EIA data

Published 05/12/2011, 10:47 AM
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Futures Pros – Natural gas futures edged higher on Thursday, retreating from a three-week low after the U.S. Energy Information Administration said natural gas inventories rose less than the five-year average last week.

On the New York Mercantile Exchange, natural gas futures for June delivery traded at USD4.199 per million British thermal units during U.S. morning trade, edging 0.12% higher.

It earlier fell as much as 1.9% to USD4.110 per million British thermal units, the lowest price since April 18.  

The contract traded at USD4.155 prior to the release of the EIA data.

The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. in the week ended May 6 rose by 70 billion cubic feet, after increasing by 72 billion cubic feet in the preceding week. Analysts had expected U.S. natural gas storage to rise by 69 billion cubic feet.

The five-year average change for the week is an increase of 90 billion cubic feet. Supplies climbed 93 billion cubic feet in the same week a year earlier.

Total U.S. natural gas storage stood at 1.827 trillion cubic feet. Stocks were 249 billion cubic feet less than last year at this time and 37 billion cubic feet below the five-year average of 1.864 trillion cubic feet for this time of year.

The report showed that in the East Region, stocks were 110 billion cubic feet below the five-year average, following net injections of 41 billion cubic feet, as mild weather reduced demand for the fuel.

Stocks in the Producing Region were 120 billion cubic feet above the five-year average of 697 billion cubic feet, after a net injection of 24 billion cubic feet.

In the West Region, stocks were 118 billion cubic feet above the five-year average after a net injection of 22 billion cubic feet. 

At 1.827 billion cubic feet, total working gas was within the five-year historical range.

Natural gas’ earlier losses came as forecasts showed mild spring weather across most of the U.S. next week, dampening demand expectations for the fuel to run air conditioners.

Elsewhere, light sweet crude oil futures for delivery in June tumbled 1.85% to trade at USD97.19 a barrel, while heating oil for June delivery slumped 1% to trade at USD2.886 per gallon during U.S. morning trade.

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