Natural Gas hits six-week high, EIA reports 85 BCF rise in US gas inventories

The US natural gas futures climbed to a six-week high today on steady demand estimates and elevated crude oil prices. The US EIA reported yesterday that Natural gas inventories increased by 85 billion cubic feet to 2,290 Bcf for the week ended May 8, compared with an 84 Bcf average build for the week over the 2021-2025 period. At the current levels, the storage is 140 Bcf or 6.5% above the five-year average. The commodity rose around 1% yesterday and currently trades up 2% at $2.95 per mmbtu. These are the highest levels in last six-weeks for the counter. MCX Natural Gas futures are also up on these cues and trade at Rs 282.80 per mmbtu, up 1.95% on the day. The counter has seen a sharp increase in open interest.

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