Natural gas futures erase gains after bearish storage data
U.S. natural gas futures turn lower after weekly storage data
Investing.com - Natural gas futures reversed gains on Thursday, briefly hitting the lowest levels of the session after data showed that U.S. natural gas supplies rose more than expected last week.
On the New York Mercantile Exchange, natural gas for delivery in June inched down 2.1 cents, or 0.77%, to trade at $2.755 per million British thermal units during U.S. morning hours. Prices were at around $2.787 prior to the release of the supply data.
A day earlier, natural gas prices shed 0.4 cents, or 0.14%, to close at $2.776. Futures were likely to find support at $2.714 per million British thermal units, the low from May 1, and resistance at $2.824, the high from May 4.
The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. in the week ended May 1 rose by 76 billion cubic feet, compared to expectations for an increase of 75 billion and following a build of 81 billion cubic feet in the preceding week.
Supplies rose by 68 billion cubic feet in the same week last year, while the five-year average change is an increase of 75 billion cubic feet.
Total U.S. natural gas storage stood at 1.786 trillion cubic feet as of last week. Stocks were 742 billion cubic feet higher than last year at this time and 67 billion cubic feet below the five-year average of 1.853 trillion cubic feet for this time of year.
Meanwhile, updated weather forecasting models called for warmer-than-average weather over much of the Midwest and Northeast, as well as the South in the first two weeks of May, which was likely to boost cooling demand.
Approximately 49% of U.S. households use natural gas for air conditioning, according to the Energy Department.
Elsewhere on the Nymex, crude oil for delivery in June tumbled $1.57, or 2.58%, to trade at $59.36 a barrel, while heating oil for June delivery dropped 1.45% to trade at $1.986 per gallon.