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Natural Gas Rises As Weekly Supplies Fall

December 13, 2018 at 15:58 by Andrew Moran

Natural gas futures are trading higher after the US government reported that domestic inventories declined as the market had anticipated this week. Despite tumbling earlier in the week, natural gas prices are trying to pare their losses amid a warmer temperatures in many parts of the US.

March natural gas futures advanced $0.085, or 2.2%, to $3.93 per million British thermal units (btu) at 14:35 GMT on Thursday on the New York Mercantile Exchange. Natural gas is on track for a weekly loss of about 0.5%, but it is still up 32% year-to-date.

According to the US Energy Information Administration (EIA), domestic supplies declined 77 billion cubic feet for the week ending December 7, which is about in line with the market forecast of 79 billion cubic feet. In total, stockpiles stand at 2.914 trillion cubic feet, down 722 billion cubic feet from the same period a year ago. They are also 723 billion below the five-year average.

Natural gas prices have been trading lower this week, driven by weather forecasts that show warmer weather for the rest of the month. After a blast of frigid temperatures in recent weeks, many parts of the US are experiencing warmer temperatures, which is bearish for the energy commodity.

In other energy commodities, January West Texas Intermediate (WTI) crude oil futures tacked on $0.32, or 0.63%, to $51.47 per barrel. February Brent crude futures added $0.22, or 0.37%, to $60.37 a barrel. January gasoline futures edged up $0.025, or 1.86%, to $1.44 a gallon. January heating oil futures rose $0.006, or 0.34%, to $1.857 per gallon.

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