Natural Gas Flat After EIA Reports Modest US Supply Build

Free $100 Forex No-Deposit Bonus

Natural gas futures are trading relatively flat after the US government reported a modest build in domestic supplies that matched market expectations. Natural gas has had a dreadful performance since peaking at $3.30 toward the end of February. Can natural gas fall to as low as $2.25, or will the energy commodity find support?

May natural gas futures dipped $0.003, or 0.12%, to $2.517 per million British thermal units (btu) at 14:41 GMT on Thursday on the New York Mercantile Exchange. Natural gas is poised for a weekly loss of about 4%, adding to its year-to-date loss of about 0.8%.

According to the US Energy Information Administration (EIA), domestic inventories of natural gas increased 20 billion cubic feet in the week ending April 2. This is roughly in line with the market forecast of 21 billion cubic feet.

In total, US supplies stand at 1.784 trillion cubic feet, down 235 billion cubic feet from the same time a year ago. They are also 24 billion cubic feet below the five-year average of 1.808 trillion cubic feet.

Natural gas has been in the news as of late for more companies and countries embracing natural gas as part of their green energy transition efforts. TC Energy, for example, stated that it sees an abundance of opportunities to grow its natural gas pipeline business. Iraq, meanwhile, wants to tap one of the largest natural gas reserves on the planet after signing a new economic deal.

But will it be enough to prop up natural gas prices? The latest movement in contracts suggests that they could decline to the $2.25 level, which could be the point for prices to slide even further amid sliding demand volumes.

In other energy commodities, May West Texas Intermediate (WTI) crude oil futures fell $0.64, or 1.07%, to $59.14 per barrel. June Brent crude futures dropped $0.42, or 0.66%, to $62.74 a barrel. May gasoline futures shed $0.0164, or 0.84%, to $1.9354 a gallon. May heating oil futures decreased $0.0159, or 0.88%, to $1.792 per gallon.

Copyright © 2021. All Rights Reserved. FXDailyReport.Com
Risk Warning: Trading CFDs is a high risk activity and you may lose more than your initial deposit. You should never invest money that you cannot afford to lose. will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets.