Hot Commodities: Natural Gas Plummets 1% On Demand Outlook

A rebound in last session failed to extend for Natural Gas futures as thin demand ahead of pick winter season pulled the prices back. The US natural gas storage increased by 92 Bcf to 1.817 Tcf in the week that ended June 1, the US Energy Information Administration reported yesterday. The injection was 10.7% less than the 103 Bcf build reported in the corresponding week in 2017 as well as 11.5% under the five-year average injection of 104 Bcf, according to EIA data. This effectively meant that stocks were 799 Bcf, or 30.5%, below the year-ago level of 2.616 Tcf and 512 Bcf, or 22%, under the five-year average of 2.329 Tcf. Natural Gas futures are currently quoting at $ 2.90 per mmbtu, down around 1% on the day after a rally towards $ 3 per ounce waned yesterday. MCX Natural Gas futures are currently trading at Rs 196.70 per mmbtu, down around 0.90% on the day.