Natural gas prices extend losses on supply data, weather forecasts

Investing.com - Natural gas prices extended Thursday's declines into Friday after official data revealed that U.S. inventories rose more than expected last week.On the New York Mercantile Exchange, natural gas futures for delivery in September traded at USD3.363 per million British thermal units during U.S. afternoon trading, down 0.72%.The September contract settled down 1.71%, at USD3.387 per million British thermal units on Wednesday.The U.S. Energy Information Administration said in its weekly report on Thursday that natural gas storage in the U.S. in the week ending July 26 rose by 59 billion cubic feet, above market expectations for an increase of 56 billion cubic feet.The numbers sent prices tumbling on Thursday, with losses carrying over into Friday's session.Inventories rose by 28 billion cubic feet in the same week a year earlier, while the five-year average change for the week is a build of 47 billion cubic feet.Total U.S. natural gas storage stood at 2.845 trillion cubic feet as of last week. Stocks were 368 billion cubic feet less than last year at this time and 34 billion cubic feet below the five-year average of 2.879 trillion cubic feet for this time of year.The report showed that in the East Region, stocks were 119 billion cubic feet below the five-year average, following net injections of 44 billion cubic feet. Stocks in the Producing Region were 55 billion cubic feet above the five-year average of 979 billion cubic feet after a net injection of 9 billion cubic feet.Elsewhere, weather forecasts continued to call for normal to below-normal temperatures for portions of the eastern U.S. over the next week, which pressured prices down as well.Milder summertime temperatures send prices falling on sentiments that demand for natural gas will decrease at the country's thermal power plants as fewer businesses and households crank up their air conditioning.Elsewhere on the NYMEX, light sweet crude oil futures for delivery in September were down 0.87% and trading at USD106.95 a barrel, while heating oil futures for September delivery were down 0.69% at USD3.0753 per gallon.
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