Investing.com – Natural gas futures eased off a 27-month low on Thursday, after the U.S. Energy Information Administration said that natural gas inventories declined more-than-expected last week, however concerns over warmer-than-normal winter weather limited gains.
On the New York Mercantile Exchange, natural gas futures for delivery in January traded at USD3.189 per million British thermal units during U.S. morning trade, jumping 1.7%.
It earlier rose by as much as 1.95% to trade at a daily high of USD3.192 per million British thermal units. Prices fell to USD3.098 earlier, the lowest since September 11, 2009.
The January contract traded at USD3.156 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 December 9 fell by 102 billion cubic feet, after declining by 20 billion cubic feet in the preceding week.
Analysts had expected U.S. natural gas storage to drop by 89 billion cubic feet. Supplies declined by 154 billion cubic feet in the same week a year earlier, while the five-year average change is a drawdown of 142 billion cubic feet.
Total U.S. natural gas storage stood at 3.729 trillion cubic feet as of last week, hovering below the all-time high of 3.852 trillion cubic feet it hit in November.
Stocks were 154 billion cubic feet higher than last year at this time and 347 billion cubic feet above the five-year average of 3.382 trillion cubic feet for this time of year.
The report showed that in the East Region, stocks were 133 billion cubic feet above the five-year average, following net withdrawals of 50 billion cubic feet.
Stocks in the Producing Region were 180 billion cubic feet above the five-year average of 1.048 trillion cubic feet, after a net withdrawal of 28 billion cubic feet.
However, gains were limited after the Commodity Weather Group said on Wednesday that temperatures across the U.S. East Coast states will be at least five degrees above-average from December 19 to December 23.
Gas futures typically climb during the winter months, as temperatures fall and demand for heating fueled by natural gas rises. But mild weather coupled with high production levels have kept prices depressed in recent weeks.
The January natural gas contract has lost nearly 11% since the beginning of December, as forecasts for warmer-than-normal winter weather limited early-season heating demand.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in January shed 0.4% to trade at USD94.58 a barrel, while heating oil for January delivery rose 0.8% to trade at USD2.852 per gallon.
On the New York Mercantile Exchange, natural gas futures for delivery in January traded at USD3.189 per million British thermal units during U.S. morning trade, jumping 1.7%.
It earlier rose by as much as 1.95% to trade at a daily high of USD3.192 per million British thermal units. Prices fell to USD3.098 earlier, the lowest since September 11, 2009.
The January contract traded at USD3.156 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 December 9 fell by 102 billion cubic feet, after declining by 20 billion cubic feet in the preceding week.
Analysts had expected U.S. natural gas storage to drop by 89 billion cubic feet. Supplies declined by 154 billion cubic feet in the same week a year earlier, while the five-year average change is a drawdown of 142 billion cubic feet.
Total U.S. natural gas storage stood at 3.729 trillion cubic feet as of last week, hovering below the all-time high of 3.852 trillion cubic feet it hit in November.
Stocks were 154 billion cubic feet higher than last year at this time and 347 billion cubic feet above the five-year average of 3.382 trillion cubic feet for this time of year.
The report showed that in the East Region, stocks were 133 billion cubic feet above the five-year average, following net withdrawals of 50 billion cubic feet.
Stocks in the Producing Region were 180 billion cubic feet above the five-year average of 1.048 trillion cubic feet, after a net withdrawal of 28 billion cubic feet.
However, gains were limited after the Commodity Weather Group said on Wednesday that temperatures across the U.S. East Coast states will be at least five degrees above-average from December 19 to December 23.
Gas futures typically climb during the winter months, as temperatures fall and demand for heating fueled by natural gas rises. But mild weather coupled with high production levels have kept prices depressed in recent weeks.
The January natural gas contract has lost nearly 11% since the beginning of December, as forecasts for warmer-than-normal winter weather limited early-season heating demand.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in January shed 0.4% to trade at USD94.58 a barrel, while heating oil for January delivery rose 0.8% to trade at USD2.852 per gallon.