Natural Gas Futures Plunge After Weekly Storage Data
Investing.com - Natural gas futures declined on Thursday, falling to the lowest levels of the session after data showed that domestic supplies in storage fell less than forecast last week.
Front-month U.S. natural gas futures sank 9.3 cents, or around 2.9%, to $3.139 per million British thermal units (btu) by 10:43AM ET (1543GMT). Futures were at around $3.191 prior to the release of the supply data.
The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. fell by 183 billion cubic feet (bcf) in the week ended Jan. 12, below forecasts for a withdrawal of 199 bcf.
That compared with a whopping decline of 359 bcf in the preceding week, which was the highest on record, a fall of 243 bcf a year earlier and a five-year average drop of 203 bcf.
Total natural gas in storage currently stands at 2.584 trillion cubic feet (tcf), according to the U.S. Energy Information Administration. That figure is 368 bcf, or around 12.5%, lower than levels at this time a year ago and 362 bcf, or roughly 12.3%, below the five-year average for this time of year.
U.S. gas futures rallied 3.3% on Wednesday to their strongest level since mid-May, as below freezing temperatures across most parts of the U.S. Northeast boosted heating-demand expectations.
Natural gas prices typically rise during the winter months as colder weather sparks indoor-heating demand. The heating season from November through March is the peak demand period for U.S. gas consumption.
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