NEW YORK: US natural gas futures eased to a more than a one-month low on Thursday after a federal report showed energy companies injected slightly more gas than expected into storage, indicating weaker demand and higher production.
Front-month gas futures for May delivery on the New York Mercantile Exchange traded 2.1 cents lower, or 0.7 percent, to USD2.80 per million British thermal units at 10:50 a.m.EDT. The contract dropped to its lowest level since February 26 earlier in the session.
Energy companies added 36 bcf of gas into stockpiles during the week ended March 27, the US Energy Information Administration said on Thursday.
That was slightly more than the 34 bcf injection forecast by analysts in a Reuters poll and an injection of 30 bcf in the same week a year ago. It was also above an average decline of 4 bcf in that week over the past five years (2021-2025).
“The market is looking at the larger picture with supplies being above average and that’s putting down more pressure on prices,” said Phil Flynn, senior analyst for Price Futures Group.
“The supplies are higher, they’re above normal. I don’t see a lot of hope turning the trend around anytime soon unless there’s some type of a big weather news… it looks like the market’s going to be heavy and headed downward for the short term.”