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Natural gas futures plunge to 3-week low after U.S. supply data

Published 07/28/2011, 10:54 AM
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Investing.com – Natural gas futures extended losses on Thursday, tumbling to a three-week low after a report from the U.S. Energy Information Administration showed that natural gas inventories rose more-than-expected last week.

On the New York Mercantile Exchange, natural gas futures for September delivery traded at USD4.231 per million British thermal units during U.S. morning trade, plunging 2.15%.     

It earlier fell as much as 2.65% to trade at USD4.207 per million British thermal units, the lowest price since July 11.  

The contract traded at USD4.287 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 July 22 rose by 43 billion cubic feet, after increasing by 60 billion cubic feet in the preceding week.

Analysts had expected U.S. natural gas storage to rise by 38 billion cubic feet.

Stockpiles advanced by 31 billion cubic feet in the same week a year earlier, while the five-year average change for the week is a buildup of 49 billion cubic feet.

Total U.S. natural gas storage stood at 2.714 trillion cubic feet. Stocks were 201 billion cubic feet less than last year at this time and 65 billion cubic feet below the five-year average of 2.779 trillion cubic feet for this time of year.

The report showed that in the East Region, stocks were 122 billion cubic feet below the five-year average, following net injections of 40 billion cubic feet.

Stocks in the Producing Region were 75 billion cubic feet above the five-year average of 912 billion cubic feet, after a net withdrawal of 8 billion cubic feet.

In the West Region, stocks were 18 billion cubic feet below the five-year average after a net addition of 11 billion cubic feet. 

At 2.714 trillion cubic feet, total working gas was within the five-year historical range.

Elsewhere on the Nymex, light sweet crude oil futures for delivery in September rose 0.5% to trade at USD97.68 a barrel, while heating oil for September delivery added 0.6% to trade at USD3.116 per gallon during U.S. morning trade.

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