Forex▼ Bearish
Natural Gas Hits Four-Week Low on Storage Build, Weak Demand
Natural gas prices slipped to a four-week low as mild weather cut demand and storage builds exceeded forecasts. The $1.90 support level is in focus with the next EIA report due Thursday.
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Natural gas futures closed near $2.00 Friday, extending a slide that has lasted four consecutive weeks. The September contract settled at $2.015, down 1.5% on the week. Mild weather across the U.S. has kept heating and cooling demand in check, leaving the market without a near-term catalyst.
The Energy Information Administration reported a storage injection of 65 billion cubic feet for the week ended Aug. 2. That topped the 58 bcf consensus and marked the third straight week that builds have exceeded the five-year average. The surplus has pinned the front-month near the lower end of the $1.90–$2.50 range that has held since May.
LNG export demand has been steady at roughly 12 bcf per day, several traders said. Domestic consumption softened as temperatures in the Midwest and Northeast hovered near seasonal norms.