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Natural gas rebounds on inventory data, warm weather weighs

Published 12/12/2012, 12:25 PM
Updated 12/12/2012, 12:28 PM
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Investing.com - Natural gas futures rose on Wednesday after inventories fell, though reports for warm weather kept gains at bay.

On the New York Mercantile Exchange, natural gas futures for delivery in January traded at USD3.414 per million British thermal units, up 0.07%.     

Estimates for this week’s storage data range from a build of 6 billion cubic feet to a drawdown of 27 billion cubic feet.

Inventories, meanwhile, fell by 79 billion cubic feet in the same week a year earlier, while the five-year average change for the week declined 113 billion cubic feet.

Total U.S. natural gas storage stood at 3.804 trillion cubic feet as of last week, 0.9% below last year’s level, though 4.6% above the five-year average for this time of year, according to U.S. Energy Department data, which prevented the commodity from rising too far.  

Meanwhile, weather services continued to predict warm temperatures for much of the U.S., which offset gains as well.

Natural gas futures touched a 14-month high of USD4.001 per million British thermal units on November 26, amid expectations of a cold winter and an increase in heating demand.

Elsewhere on the NYMEX, light sweet crude oil futures for delivery in January were up 1.13% and trading at USD86.76 a barrel, while heating oil for January delivery were up 1.60% and trading at USD2.9937 per gallon.






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