According to the U.S. Energy Information Administration, natural gas inventories rose a bit more than expected during the week ending July 5. The fuel kept falling on the day as weather forecasting models showed below-normal temperatures across the eastern parts of the U.S.
On the New York Mercantile Exchange, natural gas for August delivery traded at $3.599 per million British thermal units at 14:55 GMT, down 2.21% on the day. Prices held in range between days high and low of $3.701 and $3.589 per mBtu respectively. The fuel swung between daily gains and losses last four days and has declined 0.6% so far this week after settling 1.32% higher the previous one.
The Energy Information Administration said in its weekly report that the natural gas stockpiles gained 82 billion cubic feet in the week ending July 5. The Natural Gas Storage indicator stood at 2 687 billion cubic feet, 14.2% below last years 3 130 billion cubic feet during the comparable week. This was also 0.8% lower than the five-year average reading of 2 709 billion cubic feet.
According to early injection estimates, last weeks reading should have shown a gain between 82 billion and 102 billion cubic feet, compared to a 34 billion rise in inventories the same week last year and the five-year average gain of 71 billion cubic feet for the same period.
Meanwhile, natural gas prices fell in recent sessions and are so far marking a weekly decline as weather services called for below-normal seasonal temperatures in eastern parts of the U.S., limiting demand. 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. However, weather forecasting models showed temperatures across 48 states should go back to normal or above normal for the season after Wednesday.
Elsewhere on the market, WTI crude for August delivery traded at $105.05 per barrel at 14:52 GMT, down 1.38% on the day. Prices held in range between a 16-month high of $107.45 and days low of $105.00 per barrel. The American benchmark is en route to erase its previous weekly gains, having trimmed its advance to 1.49% so far.
Meanwhile, Brent oil for August delivery fell below the $108 mark, trading at $107.70 per barrel at 14:54 GMT, down 0.75% on the day. Prices varied between a three-month high of $108.92 and days low at $107.76 per barrel. The European benchmark erased its previous weekly gains, standing at 0.02% lower on the week so far after settling 5.59% higher the previous one.
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