Natural gas remained fairly unchanged during Thursdays thin trade. Investors kept in focus EIAs weekly natural gas storage report that was released on Wednesday instead of Thursday due to the Independence Day holiday.
Natural gas for August delivery traded at $3.657 per million British thermal units at 15:09 GMT, below opening price of $3.688. Prices ranged between daily high and low of $3.700 and $3.617 respectively. The fuel settled 1% higher yesterday, extending this weeks advance to 2.3% after it plunged 6.07% during the preceding week.
In its weekly natural gas report, the Energy Information Administration said the Natural Gas Storage Indicator rose by 72 billion cubic feet to 2 605 billion during the week ending June 28. This was 15.9% less than last years total quantity of 3 096 billion cubic feet and 1.1% below the five-year average of 2 635 billion. Inventories rose by 95 billion cubic feet during the comparable week last year and the five-year average build stands at 71 billion.
According to preliminary injection estimates, inventories should have increased in range between 51 billion cubic feet to 75 billion.
Meanwhile, weather forecasting models showed mild temperatures across most parts of the country over the next five days, reducing demand prospects for the fuel. Gas prices tend to fluctuate during the summer season. When above-normal temperatures are expected, natural gas surges as increased electricity demand to power air-conditioning calls for more supply of the fuel, which is used for a quarter of the U.S. electricity generation. Mild temperatures have the opposite effect.
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