Natural Gas volatile as markets assess US demand-supply dynamics

The US Natural Gas futures are up today but weakness in oil prices and moderating temperatures across US capped gains. Storage levels are comfortable too. The US Energy Information Administration (EIA) reported a large build in natural gas storage for the week ending June 26. The actual injection stood at 87 billion cubic feet (BCF). According to the EIA, working gas in underground storage across the Lower 48 states totaled 2,922 BCF as of that Friday. Current stocks are 23 BCF lower than the level recorded at the same time last year. However, the storage stands 175 BCF above the five-year average of 2,747 BCF. The US Natural Gas futures are up 1.16% at $3.23 per mmbtu. MCX Natural Gas futures are currently trading at Rs 308.40 per mmbtu, down 0.64% on the day but are well off intraday lows near Rs 301 per mmbtu.

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