Natgas stocks up, NYMEX prices drop

28 August 2008 23:39  [Source: ICIS news]

HOUSTON (ICIS news)--Despite the looming threat posed by Tropical Storm Gustav, front-month natural gas futures prices dropped 7% on Thursday as federal data showed a larger-than expected build in domestic inventories.

On the NYMEX, natural gas futures prices for October delivery settled at $7.970/m Btu, down 63.8 cents from the previous day.

The US Energy Information Administration said on Thursday that domestic natural gas inventories were at 2,757 bcf, up 105 bcf from the prior week. Industry analysts were expecting a build of approximately 80 bcf, according to sources.

The larger-than forecast build in stockpiles came amid a week of mild temperatures across the US, which likely reduced weather-related demand.

“As indicated by National Weather Service data, the average temperature of 72.4 degrees during the week was 1.5 degrees below normal and 2.2 degrees below the same week last year,” the EIA said in its weekly natural gas update.

Natural gas is an essential feedstock for the US chemical industry.

To discuss issues facing the chemical industry go to ICIS connect

By: Steven McGinn
+1 713 525 2653

< previous article(VIDEO - ICIS news Europe 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