Natural gas futures are rallying on Thursday after the US government reported a
December natural gas futures soared $0.045, or 1.59%, to $2.87 per million British thermal units (btu) at 14:42 GMT on Thursday on the New York Mercantile Exchange. Natural gas prices are poised for a tremendous weekly gain of 7%, adding to its 28% surge over the last month. Despite the huge rally, natural gas is still down nearly 2%
According to the US Energy Information Administration (EIA), domestic inventories of natural gas climbed by 34 billion cubic feet for the week ending November 1. This falls short of the market forecast of 39 billion cubic feet. In total, stockpiles stand at 3.729 trillion cubic feet, up 530 billion cubic feet from the same time a year ago. They are also 29 billion cubic feet above the
This comes just one day after the EIA published a report that found a growing portion of US natural gas output is
Natural gas prices have been getting support on weather patterns. The latest forecasts show
Investors were immensely bullish at around this time because projections suggested there would be a supply deficit. However, American production has reached
The bearish sentiment that has paralyzed the industry in recent months is beginning to diminish, according to the US Commodity Futures Trading Commission (CFTC) data. Hedge funds and money managers have decreased their net shorts for the week ending October 2019, but bearish speculation still trumps bullish bets.
In other energy markets, December West Texas Intermediate (WTI) crude oil futures advanced $0.68, or 1.21%, to $57.03 per barrel. December Brent crude futures rose $0.45, or 0.73%, to $62.19 a barrel. December gasoline futures were unchanged at $1.625 per gallon. December heating oil futures were also flat at $1.924 a gallon.
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SOURCE: Commodity Blog – Read entire story here.