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Natural gas futures plunge to 4-week low after bearish storage data

Published 06/26/2014, 10:52 AM
Updated 06/26/2014, 10:52 AM
Natural gas futures extend losses after bearish storage data

Investing.com - Natural gas futures extended losses to hit a four-week low on Thursday, 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 August fell to a session low of $4.449 per million British thermal units, the weakest level since May 27, before trimming losses to last trade at $4.467 during U.S. morning hours, down 2.24%, or 10.2 cents. Futures traded at $4.564 prior to the release of the supply data.

Natural gas futures ended Wednesday’s session up 0.29%, or 1.3 cents, to settle at $4.569.

Futures were likely to find support at $4.453 per million British thermal units, the low from June 24 and resistance at $4.633, the high from June 20.

The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. in the week ended June 20 rose by 110 billion cubic feet, above forecasts for an increase of 102 billion cubic feet.

The five-year average build for the week is 81 billion.

Total U.S. natural gas storage stood at 1.829 trillion cubic feet. Stocks were 690 billion cubic feet less than last year at this time and 822 billion cubic feet below the five-year average of 2.651 trillion cubic feet for this time of year.

Natural gas stockpiles have grown by more than 100 billion cubic feet for seven consecutive weeks, a record streak since 1994.

Producers would need to add approximately 2.6 trillion cubic feet to storage by November 1 to meet typical winter demand, analysts said.

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Elsewhere on the Nymex, U.S. crude oil for delivery in August slumped 1.17%, or $1.25, to trade at $105.26 a barrel, while heating oil for August delivery shed 0.51% to trade at $3.020 per gallon.

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