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Natural Gas extends losses on soft supply data

Published 02/15/2013, 01:34 PM
Updated 02/15/2013, 01:35 PM
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Investing.com - Natural gas futures extended Thursday's losses into afternoon trading on Friday after official data revealed that stockpiles fell less than expected last week.

On the New York Mercantile Exchange, natural gas futures for delivery in March traded at USD3.155 per million British thermal units, down 0.27%.

The commodity hit a session low of USD3.126 and a high of USD3.193.

The U.S. Energy Information Administration said in its weekly report on Thursday that natural gas storage in the U.S. in the week ended Feb. 8 fell by 157 billion cubic feet, below expectations for a drop of 162 billion cubic feet.

Inventories fell by 113 billion cubic feet in the same week a year earlier, while the five-year average change for the week is a decline of 154 billion cubic feet.

Total U.S. natural gas storage stood at 2.527 trillion cubic feet as of last week. Stocks were 270 billion cubic feet less than last year at this time and 348 billion cubic feet above the five-year average of 2.179 trillion cubic feet for this time of year.

The report showed that in the East Region, stocks were 94 billion cubic feet above the five-year average, following net withdrawals of 116 billion cubic feet.

Stocks in the Producing Region were 185 billion cubic feet above the five-year average of 775 billion cubic feet after a net withdrawal of 33 billion cubic feet.

Updated weather forecast models continued to call for below-normal readings for most of the nation for the latter half of February, which curbed losses.
Natural gas futures are very sensitive to weather reports in the U.S. winter.

The U.S. heating season running from November through March sees peak demand for gas.

About half of U.S. households use gas for heating purposes, according to Energy Department data.

Elsewhere on the NYMEX, light sweet crude oil futures for delivery in March were down 1.55% and trading at USD95.80 a barrel, while heating oil for March delivery were down 0.83% and trading at USD3.1970 per gallon.






 

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