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Commodities - Natural Gas Futures Turn Higher After Storage Data

Published 24/05/2018, 15:31
© Reuters.  U.S. natural gas storage rises by 91 billion cubic feet vs. forecast for 92 billion build
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Investing.com - The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. increased by 91 billion cubic feet in the week ended May 18, compared to forecasts for a build of 92 billion.

Thursday’s data compared with a gain of 106 billion cubic feet (bcf) in the preceding week and represented a decline of 804 billion from a year earlier and was also 499 bcf below the five-year average.

Total U.S. natural gas storage stood at 1.629 trillion cubic feet, 33.0% lower than levels at this time a year ago and also 23.4% below the five-year average for this time of year.

After the report, natural gas for delivery in June on the New York Mercantile Exchange rose 0.3 cents, or about 0.1%, to trade at $2.917 per million British thermal units by 10:33AM ET (14:33GMT).

Futures had been inching down 0.4 cents, or about 0.1%, at $2.910 prior to the release of the supply data.

The commodity was on track for its third straight session of gains on the back of weather forecasts for hotter weather across the country.

In its forecasts for May 24-30, the National Weather Service predicted above-average temperatures that would consolidate over most of the U.S. and continue in the following week.

Demand for natural gas tends to rise in the summer months as warmer temperatures increase the need for gas-fired electricity to power air conditioning.

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