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Natural gas futures steady close to 13-month low

Published 11/21/2011, 10:06 AM
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Investing.com – Natural gas futures were almost unchanged on Monday, hovering close to Friday’s 13-month low after data last week showing that storage levels in the U.S. rose to record high levels continued to weigh.

On the New York Mercantile Exchange, natural gas futures for delivery in December traded at USD3.326 per million British thermal units during U.S. morning trade, easing up 0.32%.      

It earlier fell by as much as 1.26% to trade at USD3.228 per million British thermal units, the lowest since Thursday’s 13-month low.

The U.S. Energy Information Administration said in its weekly report on Thursday that total U.S. natural gas storage stood at a record high of 3.850 trillion cubic feet in the week ended November 11 as producers continued to inject volumes.

Last year storage levels hit a then-record of 3.840 tcf during the same period, the Energy Information Administration said.

Combining U.S. and Canadian storage, total North American inventories are 19 bcf above the year-ago level and 301 bcf above the five-year average.

Prices have also come under pressure in recent weeks as mild weather in key gas-consuming regions in the U.S. limited early-season heating demand.

The Commodity Weather Group said that the central U.S. may remain warmer than normal through this week, while New England was forecast to have seasonal weather, limiting heating demand.

Natural gas prices have closely tracked weather forecasts in recent weeks, as traders try to gauge the impact of shifting forecasts for late October and early November on heating demand.

Elsewhere on the Nymex, light sweet crude oil futures for delivery in January tumbled 1.37% to trade at USD96.28 a barrel, while heating oil for December delivery edged up 0.06% to trade at USD3.034 per gallon.

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