Investing.com – Last week saw natural gas prices retreat from a 10-month high on Friday after forecasts showing cooler weather prompted traders to cash out of the market and lock in gains from a recent rally.
On the New York Mercantile Exchange, natural gas futures for delivery in July settled at USD4.687 per million British thermal units by close of trade on Friday, jumping 4% over the week.
Natural gas prices rallied to the highest level since July 2010 on Thursday after the U.S. Energy Information Administration said natural gas inventories rose by 83 billion cubic feet last week, below expectations for a buildup of 92 billion cubic feet.
Supplies climbed by 88 billion cubic feet in the same week a year earlier. The five-year average change for the week is an increase of 99 billion cubic feet.
Total U.S. natural gas storage stood at 2.107 trillion cubic feet. Stocks were 237 billion cubic feet less than last year at this time and 42 billion cubic feet below the five-year average of 2.149 trillion cubic feet for this time of year.
However, the rally prompted some investors to sell their position on profit taking and lock in gains on speculation that the market’s recent rally had accounted for the boost to cooling needs.
Cooler weather forecasts also weighed on prices after the Commodity Weather Group said on Friday that temperatures in major U.S. Northeast and upper Midwest cities should be near average or cooler-than-normal toward the middle of June.
Cooler-than-average summer weather reduces the need for gas-fired electricity to power air conditioning, limiting demand for natural gas.
Also Friday, industry research group Baker Hughes said that the number of active rigs drilling for natural gas in the U.S. last week rose to 887 from 881 in the previous week. Gas rigs climbed for the second consecutive week and were at a level widely expected to lead to further production gains.
According to the group, a drop to the 800-to-850 rig range would be necessary to begin to balance the market.
Elsewhere, light sweet crude oil futures for July delivery traded at USD100.56 a barrel by close of trade on Friday, dipping 0.2% over the week, while heating oil for July delivery traded at USD3.064 a gallon, climbing 2.15% over the week.
On the New York Mercantile Exchange, natural gas futures for delivery in July settled at USD4.687 per million British thermal units by close of trade on Friday, jumping 4% over the week.
Natural gas prices rallied to the highest level since July 2010 on Thursday after the U.S. Energy Information Administration said natural gas inventories rose by 83 billion cubic feet last week, below expectations for a buildup of 92 billion cubic feet.
Supplies climbed by 88 billion cubic feet in the same week a year earlier. The five-year average change for the week is an increase of 99 billion cubic feet.
Total U.S. natural gas storage stood at 2.107 trillion cubic feet. Stocks were 237 billion cubic feet less than last year at this time and 42 billion cubic feet below the five-year average of 2.149 trillion cubic feet for this time of year.
However, the rally prompted some investors to sell their position on profit taking and lock in gains on speculation that the market’s recent rally had accounted for the boost to cooling needs.
Cooler weather forecasts also weighed on prices after the Commodity Weather Group said on Friday that temperatures in major U.S. Northeast and upper Midwest cities should be near average or cooler-than-normal toward the middle of June.
Cooler-than-average summer weather reduces the need for gas-fired electricity to power air conditioning, limiting demand for natural gas.
Also Friday, industry research group Baker Hughes said that the number of active rigs drilling for natural gas in the U.S. last week rose to 887 from 881 in the previous week. Gas rigs climbed for the second consecutive week and were at a level widely expected to lead to further production gains.
According to the group, a drop to the 800-to-850 rig range would be necessary to begin to balance the market.
Elsewhere, light sweet crude oil futures for July delivery traded at USD100.56 a barrel by close of trade on Friday, dipping 0.2% over the week, while heating oil for July delivery traded at USD3.064 a gallon, climbing 2.15% over the week.