US natgas futures surge 4.23% on economy, stock

28 February 2008 21:10  [Source: ICIS news]

HOUSTON (ICIS news)--US natural gas futures surged 38.3 cents (+4.23%) to close on Thursday at $9.43/m Btu, as traders shifted their focus on the new April spot contract and showed concerns about falling natural gas inventories, the softening dollar and the faltering economy.

Thursday’s closing value was the highest settlement price for the spot month since 6 January 2006, when the market closed at $9.632/m Btu.

Earlier, the Energy Information Administration (EIA) said natural gas stocks declined by 151 bcf to 1,619 bcf for the week ended 22 February.

The latest inventory level was 7.6% lower than that for the same week in 2007, but 5.7% higher than the five-year average level.

Trade sources said that low stock levels at the end of the winter heating season would likely heighten natural gas demand during the summer months, as market participants seek to rebuild inventories ahead of the 2008-2009 winter heating season.

The market had expected the inventories to show a decline of 156 bcf.

Word that the US dollar had dropped to an all-time low versus the euro and expectations that the Federal Reserve would further trim interest rates added to the stronger buying interest.

The rally was seen across the energy complex with crude oil prices up by $2.90/bbl. Refined product contract prices were 1.80-7.45 cents/gal higher as well.

By: Brian McIntyre
+1 713 525 2653

< previous article(VIDEO – ICIS news Americas Lunchtime Bulletin 27 October 2009)

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