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Natural Gas Rallies 1% on Lower-than-Expected Supply Build

Summary:
Natural gas futures picked up some gains to kick off April, buoyed by a bullish US government weekly supply report. Natural gas investors will take anything they can get as demand is projected to be limited this month amid warmer temperatures and industrial spring maintenance. While the bears seem to be in control of the market, bulls have been attempting to take over. May natural gas futures surged %excerpt%.046, or 1.76%, to .654 per million British thermal units (btu) at 14:40 GMT on Thursday on the New York Mercantile Exchange. Natural gas is poised for a weekly gain of 0.4%, but it recorded a monthly loss of more than 5%. Year-to-date, the so-called bridge fuel is up nearly 4%. According to the US Energy Information Administration (EIA), domestic inventories of natural gas rose 14 billion

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Natural gas futures picked up some gains to kick off April, buoyed by a bullish US government weekly supply report. Natural gas investors will take anything they can get as demand is projected to be limited this month amid warmer temperatures and industrial spring maintenance. While the bears seem to be in control of the market, bulls have been attempting to take over.

May natural gas futures surged $0.046, or 1.76%, to $2.654 per million British thermal units (btu) at 14:40 GMT on Thursday on the New York Mercantile Exchange. Natural gas is poised for a weekly gain of 0.4%, but it recorded a monthly loss of more than 5%. Year-to-date, the so-called bridge fuel is up nearly 4%.

According to the US Energy Information Administration (EIA), domestic inventories of natural gas rose 14 billion cubic feet in the week ending March 26. This is lower than the market forecast of a supply build of 21 billion cubic feet. Last week, US stocks fell 11 billion cubic feet.

In total, US supplies stand at 1.764 trillion cubic feet, down 225 billion cubic feet from the same time a year ago. They are also 36 billion cubic feet above the five-year average.

Overall, natural gas demand in April is likely to be subdued as mostly mild temperatures will keep a lid on both cooling and heating consumption. But the energy commodity could find support on customary spring maintenance projects that would limit capacity at liquid natural gas (LNG) facilities, which comes as foreign exports are forecast to jump over the next several weeks.

In other energy commodities, May West Texas Intermediate (WTI) crude oil futures rallied $1.33, or 2.25%, to $60.50 per barrel. June Brent crude futures advanced $1.21, or 1.93%, to $63.96 a barrel. May gasoline futures surged $0.0358, or 1.85%, to $1.9959 per gallon. May heating oil futures jumped $0.0393, or 2.19%, to $1.8086 a gallon.

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Published under: Natural Gas

Andrew Moran
I am a full-time professional writer. Prior to my self-employment, I worked as a reporter for Digital Journal covering the politics beat and The Toronto Times reporting on the city’s entertainment scene. I currently write mostly about business, marketing and finance

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