U.S. natgas futures slide 2 pct ahead of weekly EIA storage data

Wed Jul 3, 2013 9:31am EDT
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

* Front month remains above recent four-month spot low
    * Above-normal temperatures on tap for both coasts
    * Nuclear plant outages back above average
    * Coming up: EIA natgas storage data at 12:00 p.m. EDT (1600

    By Eileen Houlihan
    NEW YORK, July 3 (Reuters) - U.S. natural gas futures slid
about 2 percent early Wednesday ahead of weekly government
storage data expected to show a near average build to
inventories despite warmer weather forecasts.
    In addition, above-normal nuclear plant outages were
expected to keep near-term demand firm, but most traders expect
any upside to be limited by milder weather forecasts for the
mid-Continent that should curb cooling demand.
    Most traders and analysts expect weekly data from the U.S.
Energy Information Administration to show a build of about 71
billion cubic feet when it is released at 12:00 p.m. EDT (1600
GMT), a Reuters poll showed. 
    Stocks rose 41 bcf during the same week last year, and on
average over the past five years have gained 71 bcf that week.
    This week's EIA storage report will be released one day
earlier than usual due to the July 4 U.S. Independence Day
holiday on Thursday.
    As of 9:23 a.m. EDT (1323 GMT), front-month August natural
gas futures on the New York Mercantile Exchange were at
$3.575 per million British thermal units, down 7.9 cents, or
just over 2 percent.
    The contract rose more than 2 percent on Tuesday, a second
straight day of gains, after sliding to a near four-month low of
$3.526 on Friday.
    The National Weather Service six to 10-day forecast issued
Tuesday called for above-normal temperatures for both coasts and
normal or below-normal readings in the middle of the nation.
    Last week's EIA gas storage report showed total domestic
inventories rose last week by 95 bcf to 2.533 trillion cubic
    Stocks are more than 17 percent below last year's record
high level, but only 1 percent below the five-year average

    Nuclear plant outages totaled 5,800 megawatts, or 6 percent
of U.S. capacity, down from 8,600 MW out a year ago, but up from
5,700 MW out on Tuesday and a five-year average outage rate of
5,000 MW.