U.S. Natural Gas Prices Slip on Record Output and Profit-Taking
U.S. natural gas futures fell by over 3% on Thursday due to record production and profit-taking after prices rose to nearly a four-week high in the previous session.
The front-month gas futures for September delivery on the New York Mercantile Exchange declined by 8.8 cents, or 3.1%, to $2.73 per million British thermal units.
According to the U.S. Energy Information Administration, energy firms added 16 billion cubic feet of gas to storage during the week ended August 14, which is lower than the 19 bcf injection during the same week last year and the five-year average increase of 29 bcf.
Phil Flynn, senior analyst for Price Futures Group, attributed the market's lack of excitement about the storage draw to the high production levels and the approaching shoulder season, where demand is expected to cool off.