Natural Gas futures slipped sharply today after testing a near three month high in last session as a correction in crude oil futures and the US weather outlook. The forecast for overall natural gas demand next week is seen as moderate as warmer temperatures are expected across most of the US. EIA Natural Gas futures edged up yesterday after the US Energy Information Administration (EIA) reported that US natural gas stocks decreased by 18 billion cubic feet for the week ending April 20. The five-year average for the week is an injection of 60 billion cubic feet, and last year’s storage increase for the week totaled 74 billion cubic feet. Natural gas inventories fell by 36 billion cubic feet in the week ending April 17.
Total US stockpiles fell week over week to 41.2% below last year’s level and are now 29.1% below the five-year average. The EIA reported that US working stocks of natural gas totaled about 1.281 trillion cubic feet at the end of last week, around 527 billion cubic feet below the five-year average of 1.808 trillion cubic feet and 897 billion cubic feet below last year’s total for the same period. Looking at the demand estimate, it is likely that the prices would see some upside resistance from hereon. The commodity is currently trading at $ 2.80 per mmbtu, down 1.20% on the day. MCX Natural Gas futures are trading at Rs 188.10 per mmbtu, down 1.26% on the day.