Wednesday, October 10, 2012

Natural gas futures prices october 10 2012

Natural gas futures prices october 10 2012 : Natural gas futures were little changed during U.S. morning trade on Wednesday, as market players continued to monitor updated weather forecasts to gauge the strength of early-Autumn heating demand.

Traders also looked ahead to Thursday’s closely watched U.S. government report on natural gas supplies.

On the New York Mercantile Exchange, natural gas futures for delivery in November traded at USD3.464 per million British thermal units during U.S. morning trade, easing down 0.1%.      

The November contract traded in a range of USD3.450 per million British thermal units, the daily low and USD3.510, the session high. Prices touched USD3.514 per million British thermal units on Tuesday, the strongest level since October 3.

Updated weather forecasts released Tuesday showed that weather models for the next 11-to-15 days were cooler than initially expected, boosting early-Autumn heating demand for natural gas.

Weather forecasters had previously called for warmer-than-normal temperatures during the period.

Natural gas futures often reach a seasonal low in October, when mild weather reduces demand, before recovering in the winter, when heating-fuel use peaks.

Meanwhile, market players shifted their focus to the U.S. Energy Information Administration’s closely watched weekly report on natural gas inventories scheduled for Thursday.

Early injection estimates range from 76 billion cubic feet to 98 billion cubic feet, compared to last year's build of 108 billion cubic feet. The five-year average change for the week is an increase of 84 billion cubic feet.

Total U.S. gas supplies stood at 3.653 trillion cubic feet, 8.3% above the five-year average level for the week.

Inventory did not top the 3.4-trillion cubic feet level in 2011 until October 5, with stocks peaking at a record 3.852 trillion cubic feet in November of last year.

Market analysts have warned that without strong demand through the early-Autumn shoulder season, gas inventories will reach the limits of available capacity later this year.

The shoulder season is the period in autumn when gas demand typically slackens and prices fall.

Elsewhere on the NYMEX, light sweet crude oil futures for delivery in November rallied 0.9% to trade at USD93.23 a barrel, while heating oil for November delivery rose 1.05% to trade at USD3.237 per gallon.

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