US GAS: Futures Drop To Fresh 10-Year Low After Storage Data |
| Wall Street Journal - Apr 19, 2012 |
Natural gas futures prices dropped to fresh 10-year lows at mid-morning Thursday after U.S. government data showed the supply glut grew by more than expected last week.
The Energy Information Administration said 25 billion cubic feet of gas was injected into storage last week, slightly more than analysts' forecasts for a rise of 23 bcf.
At 2.512 trillion cubic feet on April 13, stocks are 57.7% above the five-year average. Inventories didn't hit that level until late June last year during the typical summer build of stocks ahead of the next winter.
Tim Evans, analyst at Citi Futures Perspective, said the current storage level, which is more than 900 billion cubic feet above a year ago, implies that peak autumn storage levels are at risk of exceeding demonstrated storage capacity levels.
Natural gas for May delivery was trading down 2 cents at $1.931 per million British thermal units on the New York Mercantile Exchange, after dropping to a fresh 10-year low of $1.915/mmBtu after the EIA data.
Traders said prices now appear on target to test the $1.85/mmBtu level, last reached in September 2001.
Read Full Article from Wall Street Journal
- Posted: 2012-04-19 10:41:12
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