Natural Gas Falls a Third Day as U.S. Gas Inventories Increase

04:39 PM @ Monday - 21 July, 2014
Natural gas futures in the U.S. dropped for a third day to the lowest level in almost eight months as inventories rebounded at the quickest rate since 2001.

Natural gas for August delivery fell as much as 2.5 percent to $3.853 per million British thermal units on the New York Mercantile Exchange. The contract traded at $3.861 at 2:55 p.m. in Singapore after settling July 18 at $3.951, the lowest close since Nov. 27.

Gas inventories have climbed by 1.307 trillion cubic feet since the first storage injection after winter to 2.129 trillion cubic feet in the seven days ended July 11, an Energy Information Administration report on July 17 showed. A supply deficit versus the five-year average narrowed to 25.5 percent from a record 54.7 percent in late March after gas flows into storage caverns topped the normal rate for 13 straight weeks.

The U.S. government estimates that stockpiles will climb to 3.431 trillion cubic feet by the end of October as shale drilling drives output to a record for the fourth straight year, according to its July 8 Short-Term Energy Outlook.
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