Investing.com – Natural gas futures eased off a three-month low on Friday, as warmer-than-normal weather across most parts of the U.S. next week boosted demand expectations for the fuel.
On the New York Mercantile Exchange, natural gas futures for delivery in August settled at USD4.221 per million British thermal units by close of trade on Friday, dropping 2.15% over the week.
Natural gas prices gained nearly 1.3% on Friday, after industry weather group MDA Federal said that parts of the U.S. Great Plans and Western Midwest states could see extreme heat from July 14 to July 17.
The weather group added that above-normal temperatures were expected across most of the country's mid-section in the 11-to-15 day forecast.
Demand for natural gas tends to rise in the summer months as warmer temperatures increase the need for gas-fired electricity to power air conditioning.
Also Friday, industry research group Baker Hughes said that the number of active rigs drilling for natural gas in the U.S. last week declined for the first time in three weeks to 873 from 874.
Natural gas traders closely watch the rig count to gauge future supply growth. A drop to the 800-rig-level would be necessary to begin to balance the market, according to Baker Hughes.
On Thursday, prices fell to a three-month low of USD4.072 per million British thermal units after the U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. rose by 95 billion cubic feet last week, above expectations for an increase of 81 billion cubic feet.
Stockpiles rose by 76 billion cubic feet in the same week a year earlier, while the five-year average change for the week is a buildup of 80 billion cubic feet.
Total U.S. natural gas storage stood at 2.527 trillion cubic feet, narrowing the year-over-year supply deficit to 224 billion cubic feet and the five-year average deficit to 48 billion cubic feet.
Wall Street investment bank Goldman Sachs said in a report on Friday that it expected natural gas prices to average USD4.25 per million British thermal units in the near-term, “as new shale gas continues to flow into the market.”
The lender added that it projected prices to reach USD6.00 per million British thermal units by 2015 as more and more U.S. utility providers switch from coal to natural gas.
Elsewhere, light sweet crude oil futures for August delivery traded at USD96.52 a barrel by close of trade on Friday, advancing 1.5% over the week, while heating oil for August delivery rallied 5.5% on the week to trade at USD3.094 a gallon.
On the New York Mercantile Exchange, natural gas futures for delivery in August settled at USD4.221 per million British thermal units by close of trade on Friday, dropping 2.15% over the week.
Natural gas prices gained nearly 1.3% on Friday, after industry weather group MDA Federal said that parts of the U.S. Great Plans and Western Midwest states could see extreme heat from July 14 to July 17.
The weather group added that above-normal temperatures were expected across most of the country's mid-section in the 11-to-15 day forecast.
Demand for natural gas tends to rise in the summer months as warmer temperatures increase the need for gas-fired electricity to power air conditioning.
Also Friday, industry research group Baker Hughes said that the number of active rigs drilling for natural gas in the U.S. last week declined for the first time in three weeks to 873 from 874.
Natural gas traders closely watch the rig count to gauge future supply growth. A drop to the 800-rig-level would be necessary to begin to balance the market, according to Baker Hughes.
On Thursday, prices fell to a three-month low of USD4.072 per million British thermal units after the U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. rose by 95 billion cubic feet last week, above expectations for an increase of 81 billion cubic feet.
Stockpiles rose by 76 billion cubic feet in the same week a year earlier, while the five-year average change for the week is a buildup of 80 billion cubic feet.
Total U.S. natural gas storage stood at 2.527 trillion cubic feet, narrowing the year-over-year supply deficit to 224 billion cubic feet and the five-year average deficit to 48 billion cubic feet.
Wall Street investment bank Goldman Sachs said in a report on Friday that it expected natural gas prices to average USD4.25 per million British thermal units in the near-term, “as new shale gas continues to flow into the market.”
The lender added that it projected prices to reach USD6.00 per million British thermal units by 2015 as more and more U.S. utility providers switch from coal to natural gas.
Elsewhere, light sweet crude oil futures for August delivery traded at USD96.52 a barrel by close of trade on Friday, advancing 1.5% over the week, while heating oil for August delivery rallied 5.5% on the week to trade at USD3.094 a gallon.