Natural Gas futures recovered today after falling to a ten month low yesterday. Prices extended losses and sustained hefty declines for a second session as a drop under the key $3 per mmbtu levels continued. The US Energy Information Administration (EIA) reported Thursday that US natural gas stocks decreased by 182 billion cubic feet for the week ending December 15. The five-year average for the week is a withdrawal of 125 billion cubic feet, and last year’s storage withdrawal for the week totaled 200 billion cubic feet. Natural gas inventories fell by 69 billion cubic feet in the week ending December 8. The commodity is currently trading at $2.62 per mmbtu, up 092% on the day. MCX Natural Gas futures are trading at Rs 168 per mmbtu, up 0.66% on the day.
Yesterday, the markets focused on the fact that US is likely to see temperatures around the Christmas holidays in the eastern region. Total US stockpiles fell week over week to 5% below last year’s level and are now 2.4% below the five-year average. The EIA reported that U.S. working stocks of natural gas totaled about 3.444 trillion cubic feet, around 84 billion cubic feet below the five-year average of 3.528 trillion cubic feet and 183 billion cubic feet below last year’s total for the same period. Working gas in storage totaled 3.627 trillion cubic feet for the same period a year ago.
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