Forexpros – Natural gas futures fell to a fresh seven-week low during U.S. morning trade on Thursday, after a report from the U.S. Energy Information Administration showed U.S. gas supplies rose broadly in line with market expectations last week.
On the New York Mercantile Exchange, natural gas futures for delivery in September traded at USD2.733 per million British thermal units during U.S. morning trade, shedding 0.55%.
It earlier fell by as much as 2.2% to trade at USD2.688 per million British thermal units, the lowest level since June 28.
The September contract traded at USD2.735 prior to the release of the U.S. Energy Information Administration report.
The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. in the week ended August 10 rose by 20 billion cubic feet, just below market expectations for a decline of 24 billion cubic feet.
Inventories rose by 43 billion cubic feet in the same week a year earlier, while the five-year average change for the week is an increase of 43 billion cubic feet, according to U.S. Energy Department data.
Total U.S. natural gas storage stood at 3.261 trillion cubic feet as of last week. Stocks were 442 billion cubic feet higher than last year at this time and 363 billion cubic feet above the five-year average of 2.898 trillion cubic feet for this time of year.
The report showed that in the East Region, stocks were 118 billion cubic feet above the five-year average, following a net injection of 29 billion cubic feet.
Stocks in the Producing Region were 174 billion cubic feet above the five-year average of 930 billion cubic feet, after a net withdrawal of 4 billion cubic feet.
Market analysts have warned that without strong demand through the rest of the summer cooling season, gas inventories will reach the limits of available capacity later this year.
Stocks peaked last year in November at a record 3.852 trillion cubic feet.
A bout of extreme heat across much of the U.S. over the past two months helped boost natural gas prices above the key USD3.00-level in recent weeks. Prices rallied to a 2012 high of USD3.275 per million British thermal units on July 31.
But futures have come under heavy selling pressure since the start of August, losing almost 15% after extended weather forecasts pointed to milder weather across most parts of the U.S. throughout most of the month.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in September rose 0.6% to trade at USD94.93 a barrel, while heating oil for September delivery eased up 0.1% to trade at USD3.087 per gallon.
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