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Natural Gas extends losses on supply data, mild weather forecasts

Published 05/10/2013, 01:23 PM
Updated 05/10/2013, 01:24 PM
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Investing.com - Natural gas prices fell on Friday as investors shorted the commodity after digesting Thursday's bearish supply data.

Forecasts for moderate weather pushed prices down as well.

On the New York Mercantile Exchange, natural gas futures for delivery in June traded at USD3.933 per million British thermal units, down 1.24%.

The commodity hit a session low of USD3.914 and a high of USD4.010.

On Thursday, the U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. in the week ended May 3 rose by 88 billion cubic feet, above expectations for an increase of 83 billion cubic feet.

Inventories rose by 30 billion cubic feet in the same week a year earlier, while the five-year average change for the week is a rise of 69 billion cubic feet.

Total U.S. natural gas storage stood at 1.865 trillion cubic feet as of last week. Stocks were 737 billion cubic feet less than last year at this time and 99 billion cubic feet below the five-year average of 1.964 trillion cubic feet for this time of year.

The report showed that in the East Region, stocks were 109 billion cubic feet below the five-year average, following net injections of 52 billion cubic feet.

Stocks in the Producing Region were 40 billion cubic feet below the five-year average of 805 billion cubic feet after a net injection of 31 billion cubic feet.

Elsewhere, investors throttled back on recent sentiments that rising temperatures typical of May will hike demand for natural gas in the country's power plants as households and businesses crank up their air conditioning.

Updated weather forecasting models pointed to mild temperatures sticking around for much of the U.S. in the coming weeks.

Elsewhere on the NYMEX, light sweet crude oil futures for delivery in June were down 1.77% and trading at USD94.68 a barrel, while heating oil futures for June delivery were down 2.01% at USD2.8775 per gallon.








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