US natgas futures down 3.54% on profit taking

14 March 2008 19:54  [Source: ICIS news]

HOUSTON (ICIS news)--US natural gas futures fell 36.2 cents (-3.54%) to close on Friday at $9.868/m Btu, as traders took profits after the market reached $10.23/m Btu during the previous session.

Prices had firmed early in the session on concerns about the weaker US economy and currency. Early in the week, sources said that speculators had sought positions in the natural-gas market as a haven from the economy and as an alternative to crude oil, gold and grains.

Thursday’s closing value was the highest settlement price for the spot month since 4 January 2006, when the market closed at $10.197/m Btu.

Trade sources speculated that there would be sufficient gas supply in storage to meet any late-season demand after the Energy Information Administration (EIA) said on Thursday that natural gas stocks fell 86 bcf to 1,398 bcf for the week ended 7 March.

The EIA figure was 9.7% below inventory levels for the same week in 2007 but still 4.3% higher than the five-year average stock level. Traders had anticipated stocks to decline by 83 bcf.

Lower weekend demand from the industrial and commercial sectors prompted the sale of contracts around mid-morning. As the market declined, stop orders were triggered, further enhancing selling pressure.

By: Brian McIntyre
+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