Natural gas futures prices dropped from a three week high on the New York Mercantile Exchange (NYMEX) after the Energy Information Administration (EIA) yesterday reported that natural gas stockpiles rose more than estimated figure, boosted the concern of adequate supply with lower demand in the U.S., world"s largest energy consuming nation.
Gas futures declined 1.2 per cent on the NYMEX as the EIA showed inventories increased by 105 billion cubic feet to 2.024 trillion cubic feet in the week ended May 20, 2011 against the forecasted gain of 95 billion cubic feet. Moreover, gas futures also weakened on concern that demand for industrial fuel will be slowdown after the Commerce Department yesterday reported that gross domestic product in the U.S. grew at a 1.8% annual rate in the first quarter, less than the 2.2% forecasted figure.
Natural gas future for June contract, at the MCX, closed at Rs. 198.20 per million British thermal units (mmBtu), down by 1.40%, after opening at Rs. 202.40 against the previous closing price of Rs. 201.00. It touched the intra-day low of Rs. 194.50 with a business volume of 24,648 lots.
At the NYMEX, natural gas future for July contract closed at US$4.360 per mmBtu, down by 1.42 per cent, after opening at US$4.405 against the previous closing price of US$4.423 per mmBtu. It touched the intra-day low of US$4.232 with a business volume of 220,773 lots.