Connect with us

Trending News

U.S. natural gas futures decline as forecasts turn cooler

Published

on

© Reuters. Natural gas futures slump as forecasts turn cooler

Investing.com – U.S. prices declined on Tuesday, as forecasts for mild weather across key consumption regions of the U.S. in the week ahead dampened demand expectations for the fuel.

Natural gas for delivery in September on the New York Mercantile Exchange shed 2.6 cents, or 0.91%, to trade at $2.816 per million British thermal units during U.S. morning hours.

A day earlier, natural gas prices tacked on 4.4 cents, or 1.57%, to close at $2.842 as most parts of the central and southern U.S. remained engulfed by hot temperatures.

Updated weather forecasting models released earlier pointed to cooler weather across the Great Lakes, Northeast and Northwest-regions through August 20.

Demand for natural gas tends to fluctuate in the summer based on hot weather and air conditioning use. Natural gas accounts for about a quarter of U.S. electricity generation.

According to the U.S. Energy Information Administration, natural gas storage stood at 2.912 trillion cubic feet as of last week, 22.5% higher than during the same week a year earlier and 2.2% above the five-year average for this time of year.

Last spring, supplies were 55% below the five-year average, indicating producers have made up for all of last winter’s unusually strong demand.

Data last week showed that in the U.S. rose by 32 billion cubic feet, below expectations for an increase of 42 billion and following a build of 52 billion cubic feet in the preceding week.

Raven_Steel_Ad-V2
Raven_Steel_Ad-05

Supplies rose by 83 billion cubic feet in the same week last year, while the five-year average change is an increase of 53 billion cubic feet.

The EIA’s next storage report slated for release on Thursday, August 13 is expected to show a build of approximately 57 billion cubic feet for the week ending August 7.

Supplies rose by 79 billion cubic feet in the same week last year, while the five-year average change is an increase of 48 billion cubic feet.

Elsewhere on the Nymex, for delivery in September tumbled $1.69, or 3.76%, to trade at $43.27 a barrel, while for September delivery sank 2.47% to trade at $1.552 per gallon.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data .

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Click to comment

Leave a Reply

Your email address will not be published.

Continue Reading

Subscribe To Our Newsletter:



Copyright © 2020 The Capitalist. his copyrighted material may not be republished without express permission. The information presented here is for general educational purposes only. MATERIAL CONNECTION DISCLOSURE: You should assume that this website has an affiliate relationship and/or another material connection to the persons or businesses mentioned in or linked to from this page and may receive commissions from purchases you make on subsequent web sites. You should not rely solely on information contained in this email to evaluate the product or service being endorsed. Always exercise due diligence before purchasing any product or service. This website contains advertisements.

[email]
[email]