Natural gas futures found support during trading Thursday when data showed domestic natural gas supplies falling more than expected last week. Natural gas futures for May delivery ended the day at $2.69 per BTU, up 94 points at the New York Mercantile Exchange.
In the week ending March 27th, the US Energy Information Administration reported natural gas in domestic storage declined by 18B cubic feet – when only a decline of 10B was “expected.” In the week prior it was reported a 12B cubic foot rise, and a year earlier at this time supplies fell by 71B cubic feet.
“Supplies compounded with a milder winter may keep natural gas prices depressed until later this year,” said Devin Brady, President of Progressive Trading Group in Sherman Oaks, CA, sharing his fundamental analysis regarding the current natural gas futures situation. Brady added, “This time of year usually sees the weakest demand for natural gas and I can’t imagine any scenario in the near-term to change the fundamental picture.”
Natural gas futures trend is down with no clear bottom yet in sight. This report is not necessarily for natural gas futures traders, but users of the product in our everyday lives – great news here for the consumer!
ALL COMMENTARY IS CONSIDERED OPINION & VIEWS FROM THE AUTHOR AND NOT A SOLICITATION OF ANY SECURITIES. THE RISK OF LOSS IN TRADING COMMODITY INTERESTS CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION.
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