Forexpros –
Forexpros – Natural gas prices gained ground Thursday, ending a three day decline, as a U.S. report indicted inventories fell more than expected last week.
On the New York Mercantile Exchange, natural gas futures for March delivery traded at USD2.53 per million British thermal units during late U.S. trade, climbing 6.07%.
It is currently trading at the sessions high and earlier hit a low of USD2.34 per BTU.
The U.S. Energy Information Administration stated in its weekly report that natural gas storage in the week ending January 27 fell by 132 billion cubic feet after falling 192 billion cubic feet the previous week.
Natural gas prices have plummeted nearly 17% since Monday. Tuesday, prices booked the largest January loss in three years spiking down 7.8% on forecasts of continued mild winter weather and increased production levels signaled no end to the supply glut.
Earlier, The U.S. National Oceanic and Atmospheric Administration stated that it expects the warmer than normal winter temperatures on the East Coast, Midwest and much of the Southwest to continue through mid February adding to the long term bearish sentiment.
Official data last week indicated that U.S. gas supplies fell by 192 billion cubic feet. The drawdown was above the 184 billion cubic feet withdrawn in the same week a year earlier. It also topped the five year average withdraw of 173 billion cubic feet for the week.
Despite this significant drop, inventories remain at their highest level ever for this time of year. Total U.S. natural gas storage stood at 3.098 trillion cubic feet as of last week.
Meanwhile, Morgan Stanley cut its 2012 natural gas price forecast by almost 30% to an average USD2.70 per BTU.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in March gave back 1.42% to trade at USD96.22 a barrel.
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