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Natural gas futures rise to 3-week high after U.S. supply data

Published 05/23/2013, 10:49 AM
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Investing.com - Natural gas futures rose to a three-week high on Thursday, after a report from the U.S. Energy Information Administration showed natural gas supplies rose less-than-expected last week.

On the New York Mercantile Exchange, natural gas futures for delivery in June traded at USD4.224 per million British thermal units during U.S. morning trade, up 0.9% on the day.       

Nymex natural gas prices rose by as much as 1.3% earlier in the day to hit a session high of USD4.242 per million British thermal units, the strongest level since May 2.

The June contract traded at USD4.194 prior to the release of the U.S. Energy Information Administration report.  

The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. in the week ended May 17 rose by 89 billion cubic feet, below expectations for an increase of 91 billion cubic feet.

Inventories rose by 75 billion cubic feet in the same week a year earlier, while the five-year average change for the week is a rise of 90 billion cubic feet.

Total U.S. natural gas storage stood at 2.053 trillion cubic feet as of last week. Stocks were 680 billion cubic feet less than last year at this time and 84 billion cubic feet below the five-year average of 2.137 trillion cubic feet for this time of year.

The report showed that in the East Region, stocks were 111 billion cubic feet below the five-year average, following net injections of 46 billion cubic feet.

Stocks in the Producing Region were 22 billion cubic feet below the five-year average of 850 billion cubic feet after a net injection of 32 billion cubic feet.

Natural gas futures have been well-supported in recent days, climbing almost 7% over the past four sessions, after updated weather forecasting models pointed to a wider swath of above-normal temperatures across most parts of the U.S. in the next two weeks.

Demand for natural gas tends to rise in the summer months as warmer temperatures increase the need for gas-fired electricity to power air conditioning.  

Elsewhere on the NYMEX, light sweet crude oil futures for delivery in July tumbled 1.8% to trade at USD92.62 a barrel, while heating oil for June delivery dropped 1.5% to trade at USD2.829 per gallon.

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