Natural Gas Extends Losses

Natural Gas futures stayed slippery after the US Energy Information Administration (EIA) reported yesterday that US natural gas stockpiles increased by 69 billion cubic feet for the week ending August 31. The five-year average for the week is an injection of 74 billion cubic feet, and last year’s storage increase for the week totaled 87 billion cubic feet. Natural gas inventories rose by 63 billion cubic feet in the week ending August 31. The commodity is currently trading at $ 2.80 per mmbtu, down 0.40% on the day. MCX Natural Gas futures are trading at Rs 201.70 per kg, down 0.64% on the day.

In its Short-term Energy Outlook published earlier this week, the EIA forecast dry natural gas production to average 81 billion cubic feet per day in 2018, up by 7.4 billion cubic feet in 2017 and establishing a new record high. The agency expects natural gas production will continue to rise in 2019 to an average of 84.7 billion cubic feet per day. This also pulled the commodity lower. The demand remains moderate and the energy markets are eyeing Hurricane Florence now.