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Natural gas gains on solid U.S. supply report

Published 07/03/2014, 01:20 PM
Updated 07/03/2014, 01:21 PM
Natural gas gains as supply report meets market expectations
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Investing.com - Natural gas futures rose on Thursday after a weekly U.S. supply report met market expectations.

On the New York Mercantile Exchange, natural gas futures for delivery in August traded at $4.368 per million British thermal units during U.S. trading, up 0.24%. The commodity hit a session high of $4.409 and a low of $4.331.

The August contract settled down 2.20% on Wednesday to end at $4.357per million British thermal units.

Natural gas futures were likely to find support at $4.289 per million British thermal units, the low from May 18, and resistance at $4.608, Thursday's high.

The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. in the week ending on June 27 rose by 100 billion cubic feet, in line with expectations.

The five-year average change for the week is an increase of 68 billion cubic feet.

Total U.S. natural gas storage stood at 1.929 trillion cubic feet. Stocks were 666 billion cubic feet less than last year at this time and 790 billion cubic feet below the five-year average of 2.719 trillion cubic feet for this time of year.

Natural gas stockpiles have grown by 100 or more billion cubic feet for eight consecutive weeks, a record streak since 1994.

Producers would need to add approximately 2.6 trillion cubic feet to storage by November 1 to meet typical winter demand, according to analysts.

Elsewhere on the NYMEX, light sweet crude oil futures for delivery in August were down 0.69% at $103.76 a barrel, while heating oil for August delivery were down 0.64% at $2.9272 per gallon.

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