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Investing.com – Natural gas futures were under pressure on Thursday morning, falling to their lowest level in almost two weeks after data showed that domestic supplies in storage rose more than expected last week.
Front-month lost 4.7 cents, or around 1.7%, to $2.707 per million British thermal units (btu) by 10:35AM ET (1435GMT), its lowest since April 20. Futures were at $2.725 prior to the release of the supply data.
The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. rose by (bcf) in the week ended April 27, compared to forecasts for a gain of 47 bcf.
It was the first build of the storage injection season.
That compared with a decline of 18 bcf in the preceding week, an increase of 67 bcf a year earlier and a five-year average rise of 69 bcf.
Total natural gas in storage currently stands at 1.343 trillion cubic feet (tcf), according to the U.S. Energy Information Administration.
That figure is 903 bcf, or around 40.2%, lower than levels at this time a year ago, and 534 bcf, or roughly 28.4%, below the five-year average for this time of year.
Market experts warned that futures are likely to remain vulnerable in the near-term as below-normal temperatures in May mean less than they do in January and February.
Spring usually sees the weakest demand for natural gas in the U.S, as the absence of extreme temperatures curbs demand for heating and air conditioning.
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Source: Investing.com
