Commodity Blog

Commodity news, technical and fundamental analysis, market data on precious metals, energies, industrial metals, and soft commodities

Archives

Natural Gas Posts Losses on Latest EIA Report

June 14, 2018 at 16:05 by Andrew Moran

Natural gas futures are adding to their losses on Thursday after a new US government report showed domestic inventories increased more than initially anticipated. Natural gas will attempt to cling to its potential weekly gain and seek support in reports of the latest global investments.

July natural gas futures dipped $0.01, or 0.25%, to $2.96 per million British thermal units (btu) at 15:45 GMT on Thursday on the New York Mercantile Exchange. Despite a sluggish start to 2018, natural gas has advanced nearly 6% since March.

According to the US Energy Information Administration (EIA), US natural gas inventories climbed by 96 billion cubic feet for the week ending June 8, which is more than the 88 billion cubic feet analysts had forecast. In total, natural gas stockpiles stand at 1.913 trillion cubic feet, down 785 billion cubic feet from the same time a year ago. Total stocks are also 507 billion below the five-year average.

At the end of the trading week, investors will attempt to seek support from the latest wave of investments around the world. In Texas, the natural gas liquids project will be expanded. In China, amid rising demand, an $80 billion natural gas pipeline will be constructed. The Malaysian government is planning to liberalize the natural gas market, leading many observers to predict the creation of new pipelines and exploration.

In other energy markets, July gasoline futures plunged $0.035, or 1.68%, to $2.089 per gallon. July heating oil futures slipped $0.026, or 1.22%, to $2.158 a gallon.

On Wednesday, the EIA reported that domestic oil stockpiles tumbled by 4.1 million barrels, while US production levels surged 100,000 barrels per day (bpd) to 10.9 million bpd. Gasoline stockpiles dropped by 2.3 million barrels, while distillate inventories fell 2.1 million barrels.

August West Texas Intermediate (WTI) crude futures plummeted $0.26, or 0.38%, to $66.27 per barrel on Thursday. August Brent crude futures crumbled $0.82, or 1.07%, to $75.92 per barrel.

If you have any questions and comments on the commodities today, use the form below to reply.

Leave a Reply

required
required  

Navigation

Menu