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Natural gas nosedives on supply data

Published 05/02/2013, 02:07 PM
Updated 05/02/2013, 02:08 PM
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Investing.com - Natural gas futures took a sharp and deep nosedive on Thursday after official data revealed U.S. supplies rose way more than expected last week.

On the New York Mercantile Exchange, natural gas futures for delivery in June traded at USD4.035 per million British thermal units, down 6.74%.

The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. in the week ended April 26 rose by 43 billion cubic feet, well above expectations for an increase of 28 billion cubic feet.

Inventories rose by 31 billion cubic feet in the same week a year earlier, while the five-year average change for the week is a rise of 67 billion cubic feet.

Total U.S. natural gas storage stood at 1.777 trillion cubic feet as of last week. Stocks were 795 billion cubic feet less than last year at this time and 118 billion cubic feet below the five-year average of 1.895 trillion cubic feet for this time of year.

The report showed that in the East Region, stocks were 120 billion cubic feet below the five-year average, following net injections of 18 billion cubic feet.

Stocks in the Producing Region were 52 billion cubic feet below the five-year average of 786 billion cubic feet after a net injection of 20 billion cubic feet.

Markets were expecting supplies to rise at a much lower clip due to persistently cold weather lingering over much of the heavily populated eastern half of the U.S. during March and early April.

Sentiments that late-season cold snaps will wane also pushed prices down.

Elsewhere on the NYMEX, light sweet crude oil futures for delivery in June were up 2.44% and trading at USD93.25 a barrel, while heating oil futures for June delivery were up 1.76% at USD2.8379 per gallon.









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