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Natural Gas Pares Losses on EIA Report, Weaker US Dollar

January 25, 2018 at 17:42 by Andrew Moran

Natural gas futures were down as much as 1% on Thursday morning, but they have since pared those losses. Natural gas prices are looking to extend the remarkable surge so far this year, and the latest US government report and a tumbling greenback are helping achieve that trend towards the end of the trading week.

February natural gas futures rose $0.015, or 0.23%, to $3.517 per million British thermal units at 16:24 GMT on Thursday on the New York Mercantile Exchange. Natural prices had initially pulled back from recent gains during the morning trading session, but they have since pared those losses.

Year-to-date, natural gas has advanced nearly 20%.

According to the US Energy Information Administration (EIA), domestic supplies declined by 288 billion cubic feet for the week ending January 19. The report notes that total stocks stand at 2.296 trillion cubic feet, down 519 billion cubic feet from the same time a year ago, and 486 billion under the five-year average.

The blast of cold temperatures impacting many parts of the US have helped natural gas’s meteoric start to 2018. But some experts say that temperatures are beginning to warm up, which could place a cap on further gains over the next several days.

Oil prices are soaring on Thursday as US and Brent crude have surpassed three-year highs. February West Texas Intermediate (WTI) crude futures jumped $0.51, or 0.78%, to $66.12 per barrel. March Brent crude futures advanced $0.51, or 0.72%, to $71.04 a barrel.

The EIA reported on Wednesday that US crude supplies fell by 1.1 million barrels, while domestic output climbed 128,000 barrels per day (bpd) to 9.878 million bpd.

Crude is also benefiting from a weaker US dollar as the greenback is slipping 0.6% to under 88.72.

February gasoline futures rose $0.013, or 0.68%, to $1.92 per gallon, while February heating oil futures increased $0.01, or 0.87%, to $2.12 a gallon.

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