Natural gas futures slump to 1-year low after U.S. supply data

Forexpros - Natural gas futures turned lower on Thursday, falling to the lowest level since October 2010 after the U.S. Energy Information Administration said that natural gas inventories rose more-than-expected last week. On the New York Mercantile Exchange, natural gas futures for November delivery traded at USD3.537 per million British thermal units during U.S. morning trade, dropping 0.94%. It earlier fell by as much as 1.02% to trade at USD3.532 per million British thermal units, the lowest price since October 25, 2010. The contract traded at USD3.577 prior to the release of the EIA data.The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. in the week ended September 30 rose by 97 billion cubic feet, after increasing by 111 billion cubic feet in the preceding week. Analysts had expected U.S. natural gas storage to rise by 94 billion cubic feet. Total U.S. natural gas storage stood at 3.409 trillion cubic feet. Stocks were 78 billion cubic feet less than last year at this time and 28 billion cubic feet above the five-year average of 3.381 trillion cubic feet for this time of year.The report showed that in the East Region, stocks were 33 billion cubic feet below the five-year average, following net injections of 61 billion cubic feet. Stocks in the Producing Region were 54 billion cubic feet above the five-year average of 1.0 trillion cubic feet, after a net injection of 24 billion cubic feet. In the West Region, stocks were 7 billion cubic feet above the five-year average, after a net addition of 12 billion cubic feet. Meanwhile, the Commodity Weather Group said Wednesday that the U.S. Northeast and Midwest states will warmer-than-normal through October 19, weighing on late-season cooling demand expectations for the fuel.Natural gas prices have closely tracked weather forecasts in recent weeks, as traders try to gauge the impact of shifting forecasts for late-September and October on heating demand. Gas futures often reach a seasonal low in October, when mild weather reduces demand, before recovering in the winter, when heating-fuel use peaks.Elsewhere on the Nymex, light sweet crude oil futures for delivery in November rose 0.68% to trade at USD80.22 a barrel, while heating oil for November delivery added 0.68% to trade at USD2.795 per gallon.
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