Natural gas futures - weekly outlook: October 6 - 10 U.S. natural gas futures rallied more than 2% on Friday, as investors bet that cool weather will increase early-winter demand for the heating fuel. Natural gas futures end the week higher with cool weather in focus The heating season from November through March is the peak demand period for U.S. gas consumption. On the New York Mercantile Exchange, natural gas for delivery in November jumped 10.7 cents, or 2.72%, to settle at $4.039 per million British thermal units by close of trade on Friday. A day earlier, natural gas prices plunged 9.1 cents, or 2.26%, to end at $3.932. Futures were likely to find support at $3.908 per million British thermal units, the low from October 2 and resistance at $4.184, the high from October 1. On the week, Nymex natural gas prices tacked on 0.7 cents, or 0.17%, the second straight weekly gain. Updated weather-forecasting models released Friday called for a cold snap to trek across the northeastern U.S. in the coming days and drive demand for heating. Meanwhile, investors continued to digest Thursdays inventory data, which showed a larger than expected increase for the 24th consecutive week. The U.S. Energy Information Administration said that natural gas storage in the U.S. rose by 112 billion cubic feet, above expectations for an increase of 107 billion. Inventories rose by 99 billion cubic feet in the same week a year earlier, while the five-year average change is a build of 85 billion cubic feet. Injections of gas into storage have surpassed the five-year average for 24 consecutive weeks, alleviating concerns over tightening supplies. Total U.S. natural gas storage stood at 3.100 trillion cubic feet as of last week, narrowing the deficit to the five-year average to 11.4% from a record 54.7% at the end of March. The EIAs next storage report is slated for release on Thursday, October 9, with analysts expecting a build of 114 billion cubic feet for the week ending October 3. Inventories rose by 91 billion cubic feet in the same week a year earlier, while the five-year average change is a build of 84 billion cubic feet. Data from the Commodities Futures Trading Commission released Friday showed that hedge funds and money managers increased their bullish bets in natural gas futures in the week ending September 30. Net longs totaled 26,166 contracts, up 43.7% from net longs of 14,713 in the previous week. Elsewhere on the Nymex, crude oil for November delivery settled at $89.74 a barrel by close of trade on Friday, down $3.61, or 3.61%, on the week. Meanwhile, heating oil for November delivery slumped 3.19% on the week to settle at $2.616 per gallon by close of trade Friday. bit.ly/1s0vpm9
Posted on: Sun, 05 Oct 2014 22:40:30 +0000
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