Investing.com | Feb 14, 2018 09:11
Natural Gas Futures Slide Back Toward 21-Month Lows After Brief Reprieve
Investing.com - Natural gas futures were under pressure again on Wednesday, falling back towards their lowest level in almost two years amid speculation the end of the winter heating season will bring warmer temperatures throughout the U.S. and cut into demand for the fuel.
Front-month U.S. natural gas futures slumped 3.2 cents, or around 1.2%, to $2.562 per million British thermal units (btu) by 9:05AM ET (1405GMT). It fell to its lowest since May 2016 at $2.538 at the start of the week.
The commodity enjoyed a brief reprieve on Tuesday, rising about 1.6%.
Market experts warned that futures are likely to remain vulnerable in the near-term as the coldest part of the winter has effectively passed and below-normal temperatures in April 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.
The heating season from November through March is the peak demand period for U.S. gas consumption.
Meanwhile, market participants looked ahead to this week's storage data due on Thursday, which is expected to show a draw in a range between 173 and 187 billion cubic feet (bcf) in the week ended Feb. 9.
That compares with a decline of 119 bcf in the preceding week, a fall of 114 bcf a year earlier and a five-year average drop of 154 bcf.
Total natural gas in storage currently stands at 2.078 trillion cubic feet (tcf), according to the U.S. Energy Information Administration.
That figure is 503 bcf, or around 19.4%, lower than levels at this time a year ago and 393 bcf, or roughly 15.9%, below the five-year average for this time of year.
Written By: Investing.com
Thank you for trying AMP!
You got lucky! We have no ad to show to you!
Fusion Media will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading in financial markets, it is one of the riskiest investment forms possible. Currency trading on margin involves high risk, and is not suitable for all investors. Before deciding to trade foreign exchange or any other financial instrument you should carefully consider your investment objectives, level of experience, and risk appetite.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indices, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn't bear any responsibility for any trading losses you might incur as a result of using this data.