natural gas futures news

natural gas futures news

November 5th, 2015

Natural-gas futures climbed by more than 3% on Thursday, set to log their highest settlement in more than a week, after a U.S. government report revealed a weekly climb in supplies for the commodity that was less than the market expected.

Natural-gas futures bucked the overall downtrend in energy prices, gaining more ground in the wake of the weekly supply data.

December natural gas tacked on 7.1 cents, or 3.1%, to $2.333 per million British thermal units. A settlement around this level would be the highest a most-active contract since Oct. 27.

The U.S. Energy Information Administration on Thursday reported that supplies of natural gas rose 52 billion cubic feet for the week ended Oct. 30. That was less than the climb of between 55 billion cubic feet and 59 billion cubic feet forecast by analysts polled by Platts.

The increase was “the third consecutive bullish-side miss, suggesting either a tightening trend in the background supply/demand balance, or perhaps some difficulty in matching production flows with available remaining storage capacity,” said Tim Evans, an energy analyst at Citi Futures.

“In any case, the market looks somewhat less oversupplied, a constructive development,” he said.

Taking a closer look, however, total stocks now stand at 3.929 trillion cubic feet, matching the record level seen in November of 2012, according to EIA data going back to 1994.

- MarketWatch.