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U.S. natural gas futures slide after weekly storage data

Published 09/07/2017, 10:35 AM
© Reuters.  U.S. natural gas futures edge lower
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Investing.com - U.S. natural gas futures edged lower on Thursday, after data showed that domestic supplies in storage increased slightly more than expected last week.

U.S. natural gas for October delivery was at $2.994 per million British thermal units by 10:35AM ET (1435GMT), down 0.6 cents, or 0.2%. Futures were at around $2.995 prior to the release of the supply data.

The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. rose by 65 billion cubic feet in the week ended Sept. 1, just above forecasts for a build of 64 billion.

That compared with a gain of 30 billion cubic feet in the preceding week, a build of 36 billion a year earlier and a five-year average rise of 58 billion cubic feet.

Total natural gas in storage currently stands at 3.220 trillion cubic feet, according to the U.S. Energy Information Administration, around 6.2% lower than levels at this time a year ago and mostly in line with the five-year average for this time of year.

Natural gas futures ended around 1% higher on Wednesday, as traders remained wary of Hurricane Irma, ranked as one of the five most powerful Atlantic hurricanes in the last 80 years.

Adding to concerns, there are two more tropical storms on Irma's heels.

Jose, heading for the Caribbean, strengthened to a hurricane and could become a major Category 3 storm by Friday, while Katia churned in the Gulf of Mexico, threatening to come ashore in Mexico.

The weather threats come after Hurricane Harvey caused flooding and devastation in Texas less than two weeks ago, forcing the closure of several refineries and pipelines.

Energy traders track tropical weather in the event it disrupts production in the Gulf of Mexico.

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