Sunita SomvanshiNatural Gas Prices
Natural gas futures are near a two-month low, and the move matters beyond heating bills. If you buy gas for a factory, or you trade MCX and NYMEX contracts, this drop affects your costs and your positions this week.
Natural gas prices are near a two-month low. US gas storage rose by 77 billion cubic feet (Bcf) in the week ended October 16, according to the Energy Information Administration (EIA). Analysts expected a 79 Bcf build, so the actual build was slightly smaller. Stocks stood at 3,644 Bcf, 35 Bcf (about 1%) above the five-year average of 3,609 Bcf. The five-year average build for that week was 87 Bcf, and the build a year earlier was 86 Bcf.
Traders holding MCX natural gas contracts face rollover risk. Heating degree days, a simple measure of how cold a period is, drive heating demand. Positions held through this period carry price risk. This article is not trading advice.
Why are natural gas prices falling right now? Prices are near a two-month low, and the EIA reported a 77 Bcf storage build, slightly smaller than analysts expected.
For the oil side of this story, see our crude oil price report.
Storage is slightly above average, but builds are running below normal. Gas prices are near a two-month low. Watch the next EIA storage report, due October 29.
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