US natgas futures fall 2.9% on warm weather, oil

13 December 2007 21:09  [Source: ICIS news]

HOUSTON (ICIS news)--US natural gas futures fell 21.5 cents (-2.90%) to close on Thursday at $7.193/m Btu on a forecast of warmer weather and a decline in crude-oil and other refined-product contracts in the energy complex.

Sources said the decline was at odds with the latest inventory report from the Energy Information Administration (EIA). The EIA said natural gas stocks fell by 146 bcf to 3,294 bcf for the week ended 7 December.

Market participants said they had expected stocks to decline by 133 bcf. However, sources said that winter fuel inventories were still almost 1% higher than the same week last year and 8.5% more than the five-year average stock level.

When combined with expectations of a warming trend later in the week, traders said they were seeking to liquidate positions.

Light sweet crude ended the session at $92.25/bbl, down $2.14/bbl from Wednesday’s closing value.

NYMEX refined product contracts were also lower, with January heating oil down 2.85 cents to settle at $2.6147/gal. Reformulated before oxygenate blending (RBOB) gasoline closed at $2.3744/gal, down 3.84 cents.

By: Ignacio Sotolongo
+1 713 525 2653

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly