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Natural gas futures fall from 10-month high after U.S. EIA data

Published 06/09/2011, 10:42 AM
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Investing.com – Natural gas futures erased gains on Thursday, retreating from a ten-month high after the U.S. Energy Information Administration said natural gas inventories rose more-than-expected last week.

On the New York Mercantile Exchange, natural gas futures for July delivery traded at USD4.805 per million British thermal units during U.S. morning trade, slumping 1.05%.  

It earlier rose as much as 2% to USD4.962 per million British thermal units, the highest price since August 2, 2010.   

The contract traded at USD4.959 prior to the release of the EIA data.

The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. in the week ended June 3 rose by 80 billion cubic feet, after increasing by 83 billion cubic feet in the preceding week.

Analysts had expected U.S. natural gas storage to rise by 77 billion cubic feet.

Supplies climbed by 98 billion cubic feet in the same week a year earlier. The five-year average change for the week is an increase of 96 billion cubic feet.

Total U.S. natural gas storage stood at 2.187 trillion cubic feet. Stocks were 255 billion cubic feet less than last year at this time and 58 billion cubic feet below the five-year average of 2.245 trillion cubic feet for this time of year.

The report showed that in the East Region, stocks were 124 billion cubic feet below the five-year average, following net injections of 49 billion cubic feet.

Stocks in the Producing Region were 121 billion cubic feet above the five-year average of 817 billion cubic feet, after a net injection of 18 billion cubic feet.

In the West Region, stocks were 54 billion cubic feet below the five-year average after a net addition of 13 billion cubic feet. 

At 2.187 trillion cubic feet, total working gas was within the five-year historical range.

Natural gas prices rose earlier amid expectations for increased cooling demand after forecasts showed weather will be hotter-than-normal across most of the U.S. through June 13.

Elsewhere, light sweet crude oil futures for delivery in July climbed 0.45% to trade at USD101.55 a barrel, while heating oil for July delivery added 0.21% to trade at USD3.097 per gallon during U.S. morning trade.

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