On Thursday, U.S. natural gas futures edged higher in North America trade, after statistics indicated that natural gas supplies in storage in the U.S. increase less than expected the previous.
Delivery of natural gas for August on the NYMEX add on 3.6 cents, or 1.35 percent, to trade at $2.694 per million British thermal units by 13:32GMT, or 9:32AM ET. Prices were at approximately $2.662 prior to the announcement of the supply data after falling to a session low of $2.625, a level not met since June 24.
The U.S. Energy Information Administration stated in its weekly report that natural gas storage in the U.S. in the week ended July 15 increase by 34 billion cubic feet, below forecasts for an increase of 39 billion.
That compared with an surge of 64 billion cubic feet in the previous week, 59 billion a year before and a five-year average of 61 billion cubic feet.
Total U.S. natural gas storage raised at 3.277 trillion cubic feet, 14.4 percent higher than levels at this time a year before and 17.1 percent above the five-year average for this time of year.
Unless strong summer heat increase demand from power plants, stocks will test physical storage limits of 4.3 trillion cubic feet at the end of October.
Natural gas prices are down more than 10 percent since hitting a 13-month peak on July 1 during assumption that July heat won’t prevent stockpiles from reaching a record before the winter.
On Additional News
On Friday, crude oil futures eased, prolonging big declines in the prior session as investors reviewed U.S. data highlighting the glut in petroleum, while Iraqi crude exports are also on the increase.
The worldwide glut of oil has been easing but with massive amounts of crude being held in tanks and tankers on land and water, the rebalancing has taken longer than many anticipated.
“The market is getting a little bit nervous about the medium term. The inroads into global stockpiles of oil are not as great as anticipated,” said Ric Spooner, chief market analyst at Sydney’s CMC Markets.
Brent crude drop 11 cents, or 0.2%, to $46.09 a barrel as of 0700 GMT after closing 2.1% lower in the prior session. Brent is on track for a plunge of more than 3% for the week.
U.S. West Texas Intermediate declined 27 cents, or 0.6%, to $44.48 a barrel after ending the prior session down 2.2%.
A sluggish U.S. dollar helped support prices, that scraped into positive territory earlier in the session.
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Cited from investing.com