Investing.com – Natural gas futures steadied on Wednesday, following the previous day’s sharp drop as investors stuck to the sidelines ahead of Thursday’s storage report, which could show another triple-digit inventory build.
On the New York Mercantile Exchange, natural gas futures for November delivery traded at USD3.556 per million British thermal units during European morning trade, easing up 0.08%.
The November contract traded between a range of USD3.534, the daily low and USD3.570, the daily high. Natural gas prices tumbled nearly 3.7% on Tuesday to settle at USD3.531.
Markets were looking forward to the U.S. Energy Information Administration’s weekly report on U.S. natural gas stockpiles for the week ended October 14 on Thursday.
The report was expected to show that U.S. natural gas inventories increased by 110 billion cubic feet, after adding 112 billion cubic feet in the preceding week.
The five-year average stockpile change for the week is an increase of 58 billion cubic feet, according to U.S. Energy Department data. Supplies climbed by 93 billion cubic feet in the same week a year earlier.
Over the past four weeks, more than 400 billion cubic feet of natural gas has been added to storage, bringing levels close to the multi-year highs reached last November.
U.S. inventories typically increase during the so-called "shoulder season", the period in autumn after air-conditioning demand falls but before heating begins.
But this year's increase, aided by unusually warm temperatures, offers a much larger cushion than in most years as winter approaches.
According to the U.S. Energy Information Administration, natural gas storage in the U.S. could rise to 3.77 trillion at the end of October. Supplies reached a record 3.84 trillion last November.
Meanwhile, weather service provider AccuWeather said Tuesday that it expected colder-than-normal temperatures to moderate later this week, forecasting mostly normal temperatures for the U.S. Northeast, which should translate into less overall demand.
Elsewhere on the Nymex, light sweet crude oil futures for delivery in December added 0.28% to trade at USD88.78 a barrel, while heating oil for November delivery edged up 0.23% to trade at USD3.034 per gallon.
On the New York Mercantile Exchange, natural gas futures for November delivery traded at USD3.556 per million British thermal units during European morning trade, easing up 0.08%.
The November contract traded between a range of USD3.534, the daily low and USD3.570, the daily high. Natural gas prices tumbled nearly 3.7% on Tuesday to settle at USD3.531.
Markets were looking forward to the U.S. Energy Information Administration’s weekly report on U.S. natural gas stockpiles for the week ended October 14 on Thursday.
The report was expected to show that U.S. natural gas inventories increased by 110 billion cubic feet, after adding 112 billion cubic feet in the preceding week.
The five-year average stockpile change for the week is an increase of 58 billion cubic feet, according to U.S. Energy Department data. Supplies climbed by 93 billion cubic feet in the same week a year earlier.
Over the past four weeks, more than 400 billion cubic feet of natural gas has been added to storage, bringing levels close to the multi-year highs reached last November.
U.S. inventories typically increase during the so-called "shoulder season", the period in autumn after air-conditioning demand falls but before heating begins.
But this year's increase, aided by unusually warm temperatures, offers a much larger cushion than in most years as winter approaches.
According to the U.S. Energy Information Administration, natural gas storage in the U.S. could rise to 3.77 trillion at the end of October. Supplies reached a record 3.84 trillion last November.
Meanwhile, weather service provider AccuWeather said Tuesday that it expected colder-than-normal temperatures to moderate later this week, forecasting mostly normal temperatures for the U.S. Northeast, which should translate into less overall demand.
Elsewhere on the Nymex, light sweet crude oil futures for delivery in December added 0.28% to trade at USD88.78 a barrel, while heating oil for November delivery edged up 0.23% to trade at USD3.034 per gallon.