Monday, August 20, 2012

Nat gas futures prices 8/20/2012

Nat gas futures prices 8/20/2012 : Natural gas futures pushed higher on Monday, as concerns over increasing storm activity ahead of the peak of the Hurricane season in September underpinned prices.

On the New York Mercantile Exchange,
natural gas futures for delivery in September traded at USD2.732 per million British thermal units during U.S. morning trade, up 0.46%.

The U.S. National Hurricane Center said a tropical depression in the central Atlantic had an 80% chance of becoming a tropical cyclone over the next two days, as it moved west across the Caribbean.

Production in federal waters in the Gulf accounts for about 10% of natural-gas output, and prices typically spike when storms threaten production. The U.S. Atlantic hurricane season began on June 1 and ends November 30.

But gains looked likely to remain limited as updated weather forecasts continued to predict milder weather across key parts in the U.S. over the next two weeks.

Cooler summer temperatures reduce the need for gas-fired electricity to power air conditioning, dampening demand for natural gas.

In its weekly report on Thursday, the U.S. Energy Information Administration said that natural gas storage in the U.S. rose by 20 billion cubic feet in the week ending August 10, to 3.261 trillion cubic feet, 16% above last year’s level and 13% above the five-year average level for the week.

Market analysts have warned that without strong demand through the rest of the summer cooling season, gas inventories will reach the limits of available capacity later this year.

Elsewhere on the NYMEX, light sweet crude oil futures for delivery in September tumbled 0.96% to USD95.09 a barrel, while heating oil for September delivery was down 0.42% to trade at USD3.079 per gallon

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