On Wednesday, U.S. natural gas futures rallied in early trade, as market participants looked forward to fresh weekly information on U.S. gas inventories to measure the strength of demand for the fuel.
Delivery of Natural gas in September on the NYMEX soared 7.7 cents, or 2.82 percent, to trade at $2.810 per million British thermal units by 13:38GMT, or 9:38AM ET.
Sentiment increased during assumption this week’s storage report will present the slightest build for the week ended July 29 since at least 2010.
On Thursday, the U.S. Energy Information Administration’s storage report scheduled for release is anticipated to show a build of nearly 10 billion cubic feet, as a current heat wave stimulated households to increase their air conditioning.
That compares with a build of 17 billion cubic feet in the preceding week, 41 billion a year before and a five year average of 54 billion cubic feet.
Total U.S. natural gas storage raised at 3.294 trillion cubic feet, 13.2 percent greater than levels at this time a year before and 15.9 percent above the five year average for this time of year.
A day before, prices lost 3.8 cents, or 1.37 percent, as traders responded to milder climate and the certainty that higher summer needs for the commodity is coming to an end.
In the summer months as warmer temperatures increase the need for gas fired electricity to power air conditioning, request for natural gas have a tendency to increase.
Stockpiles will test physical storage limits of 4.3 trillion cubic feet at the end of October, unless the intense summer heat increase needs from power plants
Read more information about other commodities and stay updated with the current news about Natural Gas, visit related link.
Cited from investing.com