Nat-Gas Prices Plummet on Soaring US Inventories

Nat-gas prices fell on Friday due to adequate US inventories. The October Nymex natural gas (NGV26) closed down -0.003 (-0.11%) on Friday.

A weekly EIA report showed a +40 bcf increase in the week ended September 4, above expectations of +34 bcf. This is a bearish factor for nat-gas prices as it suggests that supplies are adequate and there may be less demand for gas in the future.

However, warm US weather forecasts could boost nat-gas demand from electricity providers to meet air conditioning use. The Commodity Weather Group said above-average temperatures are expected across the South and Southeast through September 20.