Dow Jones - Natural Gas Falls On Inventory Data

DJ Natural Gas Falls on Inventory Data


   By Nicole Friedman


  NEW YORK--Natural gas prices fell Thursday after weekly inventory data showed that stockpiles of the fuel stand at a
record high for this time of year.

  Futures for July delivery settled down 1.5 cents, or 0.6%, at $2.58 a million British thermal units on the New York
Mercantile Exchange.

  Natural-gas inventories rose by 69 billion cubic feet last week to 3.041 trillion cubic feet, the highest level on
record for the same week, the Energy Information Administration said Thursday. Analysts and traders surveyed by The
Wall Street Journal had expected the agency to report that stockpiles grew by 66 billion cubic feet.

  A glut of natural gas developed this year due to sluggish demand and robust production. Natural-gas inventories
typically grow throughout the summer ahead of the high-demand winter heating season, and some analysts expect
stockpiles to hit a new record high later this year.

  "We're ending June very high," said Kyle Cooper, analyst at IAF Advisors in Houston. "I...personally think we're
headed to all-time records."

  Inventories as of June 10 stood 26% above levels from a year ago and 30% above the five-year average for the same
week.

  However, natural-gas prices have surged in recent weeks on expectations that the glut of fuel is set to shrink as
production declines and hot weather spurs more demand for gas-powered electricity to run air-conditioning units. Prices
are up 13% so far this month.


  Write to Nicole Friedman at nicole.friedman@wsj.com


  (END) Dow Jones Newswires

  June 16, 2016 15:23 ET (19:23 GMT)

  Copyright (c) 2016 Dow Jones & Company, Inc.

061616 19:23 -- GMT
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