Natural gas futures erased losses to touch a 21-month high during U.S. morning hours on Thursday, after a report from the U.S. Energy Information Administration showed natural gas supplies rose less-than-expected last week.
On the New York Mercantile Exchange, natural gas futures for delivery in May traded at USD4.319 per million British thermal units during U.S. morning trade, up 2.5% on the day.
Nymex gas prices fell by as much as 1% earlier in the day to hit a session low of USD4.173 per million British thermal units, before retracing losses to touch a daily high of USD4.333, the strongest level since July 28, 2011.
The May contract traded at USD4.179 prior to the release of the U.S. Energy Information Administration report.
The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. in the week ended April 12 rose by 31 billion cubic feet, compared to expectations for an increase of 34 billion cubic feet.
Inventories increased by 21 billion cubic feet in the same week a year earlier, while the five-year average change for the week is a build of 39 billion cubic feet.
Typically this time of year, stockpiles begin to climb as milder spring temperatures curb demand for natural gas.
Total U.S. natural gas storage stood at 1.704 trillion cubic feet as of last week. Stocks were 794 billion cubic feet less than last year at this time and 74 billion cubic feet below the five-year average of 1.778 trillion cubic feet for this time of year.
The report showed that in the East Region, stocks were 93 billion cubic feet below the five-year average, following net injections of 19 billion cubic feet.
Stocks in the Producing Region were 48 billion cubic feet below the five-year average of 751 billion cubic feet after a net injection of 13 billion cubic feet.
Nymex gas prices have risen sharply in recent weeks, gaining almost 30% since mid-February, boosted by calls for colder temperatures in major consuming regions across the U.S. that helped tighten the market.
Still, some analysts have warned that further gains may be limited with spring's low-demand shoulder season looming.
The heating season from November through March is the peak demand period for U.S. gas consumption. Nearly 50% of all U.S. households use gas for heating.
Gas use typically hits a seasonal low with spring's mild temperatures, before warmer weather increases demand for gas-fired electricity generation to power air conditioning.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in June lost 0.15% to trade at USD86.86 a barrel, while heating oil for May delivery added 0.35% to trade at USD2.744 per gallon. - investing.com
On the New York Mercantile Exchange, natural gas futures for delivery in May traded at USD4.319 per million British thermal units during U.S. morning trade, up 2.5% on the day.
Nymex gas prices fell by as much as 1% earlier in the day to hit a session low of USD4.173 per million British thermal units, before retracing losses to touch a daily high of USD4.333, the strongest level since July 28, 2011.
The May contract traded at USD4.179 prior to the release of the U.S. Energy Information Administration report.
The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. in the week ended April 12 rose by 31 billion cubic feet, compared to expectations for an increase of 34 billion cubic feet.
Inventories increased by 21 billion cubic feet in the same week a year earlier, while the five-year average change for the week is a build of 39 billion cubic feet.
Typically this time of year, stockpiles begin to climb as milder spring temperatures curb demand for natural gas.
Total U.S. natural gas storage stood at 1.704 trillion cubic feet as of last week. Stocks were 794 billion cubic feet less than last year at this time and 74 billion cubic feet below the five-year average of 1.778 trillion cubic feet for this time of year.
The report showed that in the East Region, stocks were 93 billion cubic feet below the five-year average, following net injections of 19 billion cubic feet.
Stocks in the Producing Region were 48 billion cubic feet below the five-year average of 751 billion cubic feet after a net injection of 13 billion cubic feet.
Nymex gas prices have risen sharply in recent weeks, gaining almost 30% since mid-February, boosted by calls for colder temperatures in major consuming regions across the U.S. that helped tighten the market.
Still, some analysts have warned that further gains may be limited with spring's low-demand shoulder season looming.
The heating season from November through March is the peak demand period for U.S. gas consumption. Nearly 50% of all U.S. households use gas for heating.
Gas use typically hits a seasonal low with spring's mild temperatures, before warmer weather increases demand for gas-fired electricity generation to power air conditioning.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in June lost 0.15% to trade at USD86.86 a barrel, while heating oil for May delivery added 0.35% to trade at USD2.744 per gallon. - investing.com
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