Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

Natural gas prices fall as forecasts callfor U.S. warming trend

Published 10/28/2013, 12:50 PM
Updated 10/28/2013, 12:51 PM
CL
-
NG
-
NYF
-
Investing.com - Natural gas prices dropped on Monday after updated weather-forecasting models called for seasonably mild temperatures to edge out below-normal mercury readings across much of the central and eastern U.S.

On the New York Mercantile Exchange, natural gas futures for delivery in December traded at USD3.686 per million British thermal units during U.S. trading, down 3.32%.

The commodity hit a session low of USD3.664 and a high of USD3.787.

The December contract settled up 1.84% at USD3.812 per million British thermal units on Friday.

Futures were likely to find support at USD3.557 per million British thermal units, Thursday's low, and resistance at USD3.869, the high from Oct. 16.

Weather-forecasting models on Monday predicted that currently cool temperatures in the Midwest and Eastern U.S. will give way to normal to above-normal temperatures over the next six to 10 days.

Milder temperatures cut into the need for heating or air conditioning this time of year, lowering demand for natural gas at the nation's thermal power generators.

Investors kept an eye on supplies as well.

The U.S. Energy Information Administration said in its weekly report that natural gas storage in the week ended Oct. 18 rose by 87 billion cubic feet, above forecasts for an increase of 79 billion cubic feet.

Inventories increased by 54 billion cubic feet in the same week a year earlier, while the five-year average change for the week is a build of 75 billion cubic feet.

Total U.S. natural gas storage stood at 3.741 trillion cubic feet. Stocks were 92 billion cubic feet less than last year at this time and 77 billion cubic feet above the five-year average of 3.664 trillion cubic feet for this time of year.

Elsewhere on the NYMEX, light sweet crude oil futures for delivery in December were up 0.57% and trading at USD98.41 a barrel, while heating oil for December delivery were up 1.62% and trading at USD2.9560 per gallon.









Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.