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Natural gas backs off 5-month lows after storage data

Published 01/10/2015, 15:45
Updated 01/10/2015, 15:48
© Reuters.  Natural gas prices trim losses after inventory data
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Investing.com - Natural gas futures eased back from five-month lows on Thursday after data showed that U.S. natural gas supplies increased less than expected last week.

On the New York Mercantile Exchange, natural gas for delivery in November was down 0.87% to $2.50 per million British thermal units. Prices were at around $2.47 prior to the release of the supply data.

In its weekly report the Energy Information Administration said natural gas storage in the week ended September 25 rose 98 billion cubic feet, compared to expectations for an increase of 100 bcf.

Total U.S. natural gas storage stood at 3,538 bcf the EIA said. Stocks were 454 Bcf higher than last year at this time and 152 Bcf above the 5-year average of 3,386 Bcf.

EIA data shows that power plants account for approximately 32% of gas demand in the U.S. Demand for natural gas tends to fluctuate in the summer based on hot weather and air conditioning use.

Gas prices have come under pressure in recent weeks amid forecasts for milder weather and concern about oversupply.

Elsewhere on the Nymex, crude oil for delivery in November rallied 2.4% to $46.17 a barrel, while heating oil for November delivery was up 1.53% to $1.56 per gallon.

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