U.S. natural gas reserves rise less than expected, prices jump

U.S. Natural Gas Storage Indicator rose less than expected during the week ending June 7. Natural gas stockpiles jumped by 95 billion cubic feet to 2 347 billion according to the Energy Information Administration, compared to a 111 billion gain last week, when natural gas inventories reached at 2 252 billion cubic feet.

During the same week last year, natural gas stockpiles were 20% higher, totaling 2 934 billion cubic feet. Last weeks reading is also 2.4% lower compared to the five-year average of 2 405 billion cubic feet.

On the New York Mercantile Exchange, natural gas for July delivery traded 0.60% higher following EIAs stockpiles report. The fuel stood at $3.80 per million British thermal units at 15:02 GMT. Prices ranged between daily high and low at $3.811 and $3.716 respectively.

Natural gas will most likely be supported by increased demand this month. Although forecasts showed a milder temperatures throughout the U.S., June weather is still expected to be above-the-normal warmer. Natural gas demand tends to surge in the summer months because higher temperatures increase the need for gas-powered electricity to power air conditioning.

Elsewhere on the market, WTI crude is trading 0.22% lower on the day, standing at $95.67 a barrel at 14:58 GMT. Prices ranged between daily high at $95.93 and low of $95.05 a barrel.

Brent oil for August delivery stood on the green side, up 0.30% on the day. The European benchmark traded at $103.88 at 14:59 GMT, moving between daily high and low of $103.98 and $102.80 respectively.