Natural gas futures traded high after US supply data

Natural gas futures traded high on Thursday, after a report from the US Energy Information Administration which showed that natural gas supplies increased less than traders expected last week.

On the New York Mercantile Exchange, natural gas futures for August delivery traded at 3.772 USD per million British thermal units, up 3.9% on the day.

Prior to the release of the US Energy Information Administration report the August contract traded at 3.687 USD.

The August contract increased by as much as 4.1% earlier in the day and hit a session high of 3.778 USD per million British thermal units, the highest level since July 10th.

The US Energy Information Administration said in its weekly report that US natural gas storage in the week ended July 12 increased by 58 billion cubic feet, lower than market expectations for an increase of 64 billion cubic feet.

Natural gas inventories increased by 29 billion cubic feet in the same week a year earlier, while the five-year average shift for the week is a build of 70 billion cubic feet.

Total US natural gas storage since last week stood at 2.745 trillion cubic feet.

The report also showed that in the East Region, stocks were 101 billion cubic feet lower than the five-year average, following net injections of 37 billion cubic feet.

Weather forecasting models continued to point to high temperatures across key consuming regions in the US during the following three days, raising near-term demand expectations for the fuel.

Temperatures across the US Northeast are expected to remain in the 90’s over the weekend. However longer-term outlooks indicate moderate temperatures for next week.

In the next 11 to 15 days, the weather in the Northeast is expected to fall back to normal seasonal levels.

The US Northeast is a key gas consuming region. Mild summer temperatures lower the need for gas-fired electricity for home cooling.


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