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Natural gas declines on softer-than-expected U.S. supply report

Published 04/24/2014, 01:10 PM
Updated 04/24/2014, 01:13 PM
Natural gas futures dip on sluggish supply report
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Investing.com - A bearish weekly stockpile report revealing a larger-than-expected inventory build in the U.S. sent natural gas prices falling on Thursday, though a late-season cool snap cushioned losses.

On the New York Mercantile Exchange, natural gas futures for delivery in June traded at $4.713 per million British thermal units during U.S. trading, down 0.72%. The commodity hit session high of $4.818 and a low of $4.693.

The June contract settled down 0.23% on Wednesday to end at $4.747 per million British thermal units.

Natural gas futures were likely to find support at $4.487 per million British thermal units, the low from April 17, and resistance at $4.818, the earlier high.

The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. in the week ended April 18 rose by 49 billion cubic feet, above forecasts for an increase of 42 billion cubic feet.

Total U.S. natural gas storage stood at 899 billion cubic feet. Stocks were 831 billion cubic feet less than last year at this time and 1.008 trillion cubic feet below the five-year average of 1.907 trillion cubic feet for this time of year.

The report showed that in the East Region, stocks were 470 billion cubic feet below the five-year average, following net injections of 17 billion cubic feet.

Stocks in the Producing Region were 412 billion cubic feet below the five-year average of 805 billion cubic feet after a net injection of 22 billion cubic feet.

Prices found additional support after updated weather-forecasting models continued to call for below-normal temperatures stretching across portions of the central and eastern U.S. in the coming week.

Weather forecasts gave the commodity some support.

Portions of the Midwest and eastern regions of the U.S. should see cool temperatures run through the end of April, which should hike demand for heating.

Elsewhere on the NYMEX, light sweet crude oil futures for delivery in June were up 0.51% and trading at $101.96 a barrel, while heating oil for May delivery were up 1.08% at $3.0139 per gallon.

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