Natural Gas Storage gained 111 billion cubic feet to 2.252 trillion in the week ending May 31, compared to an 88 billion increase in the preceding week. According to a survey done by Platts, the energy information arm of McGraw-Hill Cos, the EIA’s report should have shown a rise by 93 to 97 billion cubic feet.
On the New York Mercantile Exchange, natural gas for July delivery plunged by 3.41% for the day and traded at $3.871 at 14:42 GMT. Following the Energy Information Administrations report, the fuels price fell to a three-month low, standing at $3.840 per cubic feet.
Natural gas inventories were 3% below the five-year average of 2 321 billion cubic feet and 21.5% lower than last years 2 868 billion figure.
Despite the major retreat, gas will most likely be supported by increased demand this month. Although forecasts showed a milder temperatures throughout the U.S. on Wednesday, June weather is still expected to be above-the-normal warmer. Natural gas demand tends to surge in the summer months because higher temperatures increase the need for gas-powered electricity to power air conditioning.
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