Investing.com – Natural gas futures eased off a six-day high on Friday, paring sharp gains made in the previous session, as a moderating weather outlook weighed on demand expectations for the fuel.
On the New York Mercantile Exchange, natural gas futures for delivery in August settled at USD4.316 per million British thermal units by close of trade on Friday, gaining 1.3% over the week.
Natural gas futures jumped nearly 1.4% on Thursday, hitting USD4.419 per million British thermal units, the highest price since June 22.
The U.S. Energy Information Administration said in its weekly report on Thursday that natural gas storage in the U.S. rose by 78 billion cubic feet last week, falling short of expectations for a buildup of 80 billion cubic feet.
Stocks rose by 63 billion cubic feet in the same week a year earlier, while the five-year average change for the week is an injection of 77 billion cubic feet.
Total U.S. natural gas stockpiles rose to 2.432 trillion cubic feet, narrowing a supply-deficit to 2.5% below the five-year average and 9.1% below 2010 levels.
Prices pared gains on Friday after the Commodity Weather Group said that it expected mostly normal temperatures across the continental U.S. from July 5 to July 9.
The weather group added that the hottest weather for the East Coast in the next two weeks was mainly confined to the Fourth of July weekend.
"We are seeing some more normal temperatures starting to show up, acting to cap the market's upward potential," the weather group said in a report.
Demand for natural gas tends to fluctuate in the summer based on weather forecasts and air conditioning use.
Also Friday, industry research group Baker Hughes said that the number of active rigs drilling for natural gas in the U.S. last week rose to 874 from 873, the second consecutive weekly gain, adding to concerns over rising production levels in the U.S.
According to the group, a drop to the 800-rig-level would be necessary to begin to balance the market.
Elsewhere, light sweet crude oil futures for August delivery traded at USD94.77 a barrel by close of trade on Friday, jumping 4% over the week, while heating oil for August delivery rallied 4.95% on the week to trade at USD2.921 a gallon.
On the New York Mercantile Exchange, natural gas futures for delivery in August settled at USD4.316 per million British thermal units by close of trade on Friday, gaining 1.3% over the week.
Natural gas futures jumped nearly 1.4% on Thursday, hitting USD4.419 per million British thermal units, the highest price since June 22.
The U.S. Energy Information Administration said in its weekly report on Thursday that natural gas storage in the U.S. rose by 78 billion cubic feet last week, falling short of expectations for a buildup of 80 billion cubic feet.
Stocks rose by 63 billion cubic feet in the same week a year earlier, while the five-year average change for the week is an injection of 77 billion cubic feet.
Total U.S. natural gas stockpiles rose to 2.432 trillion cubic feet, narrowing a supply-deficit to 2.5% below the five-year average and 9.1% below 2010 levels.
Prices pared gains on Friday after the Commodity Weather Group said that it expected mostly normal temperatures across the continental U.S. from July 5 to July 9.
The weather group added that the hottest weather for the East Coast in the next two weeks was mainly confined to the Fourth of July weekend.
"We are seeing some more normal temperatures starting to show up, acting to cap the market's upward potential," the weather group said in a report.
Demand for natural gas tends to fluctuate in the summer based on weather forecasts and air conditioning use.
Also Friday, industry research group Baker Hughes said that the number of active rigs drilling for natural gas in the U.S. last week rose to 874 from 873, the second consecutive weekly gain, adding to concerns over rising production levels in the U.S.
According to the group, a drop to the 800-rig-level would be necessary to begin to balance the market.
Elsewhere, light sweet crude oil futures for August delivery traded at USD94.77 a barrel by close of trade on Friday, jumping 4% over the week, while heating oil for August delivery rallied 4.95% on the week to trade at USD2.921 a gallon.