Natural Gas gains but stays volatile, US inventories gain 120 BCF

Natural Gas futures are modestly higher today but remain in an overall volatile mode. The benchmark US Natural Gas futures spiked from around one-month low this week but rallies are failing to hold on amid cooler than normal spring temperatures in the US, which will reduce gas demand from electricity providers to run air conditioning. The counter fell more than 2.50% yesterday and currently quotes at $3.69 per mmbtu, up 1.57% on the day. Working natural gas in storage across the United States increased by 120 billion cubic feet in the week ending May 16 compared to the previous seven-day period to reach 2,375 billion cubic feet (BCF), the Energy Information Administration (EIA) said in a report yesterday. The inventories were down 12.7% y/y but were 3.9% above their 5-year seasonal average. Natural Gas tumbled around 20% in April and is up around 11% this month.

Powered by Commodity Insights