Natural Gas Slips After US Inventory Jumps
Natural Gas futures fell during noon trade in the domestic market on Friday as investors and speculators exited positions in the energy commodity after a bigger than expected increase in US crude stockpiles signaled a worsening supply glut.
The EIA said that US crude inventories rose by 71 billion cubic feet in the week ended May 20, 2016, above the 68 billion cubic feet increase expected by analysts.
Total US natural gas storage at 2.825 trillion cubic feet, is 26.8 per cent higher than levels at this time a year ago and 27.2 per cent above the five-year average for this time of year.
At the MCX, Natural gas futures for June 2016 contract were trading at Rs.144.5 per mmBtu, down by 0.21 per cent, after opening at Rs. 145, against the previous closing price of Rs. 144.8. It touched the intra-day low of Rs. 144.4 till the trading.
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