Natural gas extends losses on rising U.S. inventory levels

Investing.com - Natural gas price carried Thursday's losses into Friday after official data revealed the stockpiles in the U.S. rose more than expected last week.In the New York Mercantile Exchange, natural gas futures for delivery in July traded at USD3.785 per million British thermal units, down 2.39%.The commodity hit a session low of USD3.767 and a high of USD3.904.The U.S. Energy Information Administration said in its weekly report on Thursday that natural gas storage in the U.S. in the week ended June 14 rose by 91 billion cubic feet, above market expectations for an increase of 90 billion.Inventories rose by 63 billion cubic feet in the same week a year earlier, while the five-year average change for the week is a rise of 80 billion cubic feet.Total U.S. natural gas storage stood at 2.438 trillion cubic feet as of last week. Stocks were 559 billion cubic feet less than last year at this time and 47 billion cubic feet below the five-year average of 2.485 trillion cubic feet for this time of year.The report showed that in the East Region, stocks were 94 billion cubic feet below the five-year average, following net injections of 60 billion cubic feet. Stocks in the Producing Region were 3 billion cubic feet above the five-year average of 930 billion cubic feet after a net injection of 20 billion cubic feet.Investors avoided the commodity despite weather reports pointing to above-normal temperatures settling in for much of the lower 48 U.S. states for the rest of June.Hotter temperatures send prices rising on sentiments that demand for natural gas will increase at the country's thermal power plants as businesses and households crank up their air conditioning.Natural gas accounts for about a quarter of U.S. electricity generation.Elsewhere on the NYMEX, light sweet crude oil futures for delivery in August were down 1.37% and trading at USD93.84 a barrel, while heating oil futures for July delivery were down 0.87% at USD2.8473 per gallon.
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