Natural gas rose more than 1% on Monday with sentiment still boosted from last weeks upbeat inventories data and positive outlook for this weeks EIA report. Market players continued to monitor hurricanes Ingrid and Humberto.
On the New York Mercantile Exchange, natural gas for delivery in October rose by 1.89% to $3.746 per million British thermal units at 15:05 GMT. Prices held in range between days high and low of $3.749 and $3.628 per mBtu respectively. The fuel rose by 1.1% on Friday and settled the week 4.1% higher after plunging 2.11% in the preceding week.
Gas surged more than 2% on Thursday following a bullish inventories report by the EIA. The agency said that U.S. natural gas stockpiles added 65 billion cubic feet in the week ended September 6, above the five-year average build of 62 billion. EIA’s statistics however outperformed the median estimate of six analysts, surveyed by Bloomberg, who predicted a 68 billion gain. Stockpiles increased by 27 billion cubic feet in the comparable week a year earlier.
Total gas held in underground storage hubs now equaled 3 253 billion cubic feet, and were 172 billion, or 5%, below last year’s 3 425 billion. The surplus over the five-year average of 3.207 trillion cubic feet remained unchanged at 1.4% from the preceding week.
Early injection estimates for this weeks build range between 55 billion cubic feet and 68 billion cubic feet, compared to a 61 billion increase in the comparable week last year. The five-year average reading stood at 74 billion cubic feet.
Market players also watched closely the hurricane situation in the Atlantic. The National Hurricane Center reported that hurricane Ingrid drifted west across the Bay of Campeche and weakened to a tropical storm, bringing however heavy rainfall to Northeastern Mexico. Meanwhile, hurricane Humberto became a tropical storm again but is forecast to strengthen back while turning north-northwestward.
“These rains are likely to result in life-threatening flash floods and mud slides,” the center said in an advisory at 7 a.m. Mexico City time.
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