Commodities – Natural Gas Futures Turn Positive After Storage Data

Investing.com – The U.S. Energy Information Administration said in its weekly report that in the U.S. increased by 46 billion cubic feet in the week ended July 13, compared to forecasts for a build of 58 billion.

Thursday’s data compared with a gain of 51 billion cubic feet (bcf) in the preceding week and represented a decline of 710 billion from a year earlier and was also 535 bcf below the five-year average.

Total U.S. natural gas storage stood at 2.249 trillion cubic feet, 24.0% lower than levels at this time a year ago and also 19.2% below the five-year average for this time of year.

After the report, for delivery in August on the New York Mercantile Exchange jumped 3.1 cents, or about 1.1%, to trade at $2.752 per million British thermal units by 10:33AM ET (14:33GMT).

Futures had been falling 0.5 cents, or about 0.2%, at $2.716 prior to the release of the supply data.

Prices have been under pressure this week as traders focus on record production levels and recent weather forecasts. The National Oceanic Atmospheric Administration predicted cooler than normal weather to cover most of the U.S. for the next one-to-two weeks.

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.

Adding to the pressure are recent concerns over trade tensions and their possible negative impact on global growth. If the global economy falters, energy consumption could be diminished.

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.