NEW YORK: US natural gas futures slipped about 5% on Wednesday on an outlook for reduced heating demand next week and on the eve of a closely watched weekly federal storage report.
Front-month gas futures for May delivery on the New York Mercantile Exchange traded 8.5 cents lower, or 4.7%, to $1.73 per million British thermal units (mmBtu) at 10:20 a.m. EDT.
“This is just some repositioning ahead of storage report due tomorrow and along with that we are approaching the May contract expiration towards the end of April here,” which is weighing down the natgas market, said Robert DiDona of Energy Ventures Analysis.
The US Energy Information Administration (EIA) will release its weekly storage report at 10:30 a.m. ET (1530 GMT), Thursday.
Analysts forecast gas stockpiles were over 35% above normal levels for this time of year.
LSEG forecasts gas demand in the Lower 48 states, including exports, to fall to 92.7 bcfd next week from 98.0 bcfd this week.
Comments
Comments are closed for this article.