Natural Gas tanks under $3 mark after EIA reports large 90 BCF rise in US storage

Natural Gas melted yesterday with NYMEX Natural gas futures tanking around 5.20% as a slide under $3 per mmbtu mark extended. The counter slumped on elevated storage and worries over demand as traders eyed cooler weather in US eastern region. Energy Information Administration or EIA data showed yesterday that US natural gas inventories rose 90 bcf in the week ended September 12, marking a sharp upturn compared to the five-year average for this time of year of 74 bcf. The inventories were down 0.3% on year, but were 6.3% above their 5-year seasonal average. The futures fell despite firm cues from equities and currently trade at $2.91 per mmbtu, down 0.82% on the day. MCX Natural Gas futures are trading at Rs 257.50 per mmbtu, down 0.58% on the day amid an overall choppy trading range today.

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