Natural Gas Rallies on Larger-than-Expected US Supply Withdrawal
Natural gas futures are rallying on Thursday after the US government reported a much
April natural gas futures surged $0.031, or 1.21%, to $2.589 per million British thermal units (btu) at 14:40 GMT on Thursday on the New York Mercantile Exchange. Natural gas is on track for a weekly gain of 2%, bringing its
According to the US Energy Information Administration (EIA), domestic inventories of natural gas declined by 36 billion cubic feet for the week ending March 19. This beats the median estimate of -25 billion cubic feet and is also a larger supply withdrawal than last week’s 11 billion cubic feet.
In total, US supplies stand at 1.746 trillion cubic feet, down 263 billion cubic feet from last year. They are also 78 billion cubic feet below the
Natural gas prices had been recording tepid gains in recent sessions, buoyed by strengthening demand for liquefied natural gas (LNG) and declining supplies.
Europe has witnessed its LNG inventories decline, forcing nations to increase their appetite for US shipments of the energy commodity. Since spring maintenance work could impact LNG stocks in the coming weeks, this could offer support for natural gas prices over the next month.
Investors are ditching
For now, the natural gas market will rely on the supply and demand fundamentals.
In other industry news, Saudi Arabia’s
In other energy commodities, April West Texas Intermediate (WTI) crude oil futures tumbled $2.14, or 3.5%, to $59.04 per barrel. May Brent crude futures declined $1.92, or 2.99%, to $62.33 a barrel. April gasoline futures dropped $0.0464, or 2.33%, to $1.9411 per gallon. April heating oil futures plunged $0.0508, or 2.78%, to $1.7757 a gallon.
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