Natural gas futures were seen trading lower, falling the most in ten weeks after government report from the Energy Information Administration showed that natural gas stockpiles in the US climbed.
Natural gas futures for June delivery slid 0.52% lower at $4.565 per million British thermal units on the New York Mercantile Exchange at time of writing, marking the lowest since April 16 and the biggest one-day fall for a month contract since Feb 26. Futures for the commodity climbed to a weekly high of $4.809 Mmbtu on Wednesday.
Gas prices dropped to a ten week low on Thursday as the Energy Information Administration said stockpiles rose by 74 billion cubic feet in the week ending May 2 to 1.055 trillion, compared to analysts forecast of a 70 billion rise. Stockpiles came in at 981 million cubic feet in the previous week.
Inventories may reach 3.405 trillion cubic feet by the end of October, lower than the 404 billion seen in the previous year, the EIA said in its May 6 Short-Term Energy Outlook. The EIA forecasted that the weekly injections from April through October will need to reach an average of 90 billion cubic feet, 20 billion more than the fiver-year average rise during the period.
The EIA outlook also showed that the markets gas production will rise by 3% in 2012 to an all-time high of 72.26 billion cubic feet a day.
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