Natural Gas on MCX settled down 2.18% at 237.60 dropped on long liquidation as traders took profit following an in line inventory report released earlier in the day by the Department of Energy.
Pressure also seen as the U.S. Energy Information Administration (EIA) reported Thursday morning that U.S. natural gas stockpiles increased by 81 billion cubic feet for the week ending October 12.
Market were expecting a storage injection of around 82 billion to 89 billion cubic feet. The five-year average for the week is an injection of 79 billion cubic feet, and last year’s storage increase for the week totaled 51 billion cubic feet.
Natural gas inventories rose by 90 billion cubic feet in the week ending October 5. The trajectory of injections remains subdued which will put the US at a year over year deficit when the withdrawal season begins on November 1. There are no tropical cyclones in the Atlantic or the Caribbean.
The weather is expected to be colder than normal for most of the mid-west and east coast for the next 2-weeks according to the latest forecast from NOAA. A weather system lingers over Texas and the South today where highs will only reach the 40s to 60s with heavy showers continuing.
