US Natural Gas Inventories Show Expected Increase
The latest data on US natural gas inventories, released a short while ago for the week ending on September 15th, showed an increase of 90 billion cubic meters in natural gas inventories over the past week. This aligns with market expectations, which had predicted a similar increase in natural gas inventories. The previous reading had indicated an increase of around 64 billion cubic meters in US natural gas inventories in the previous week.
Market Reaction: Natural Gas Futures Prices
In trading, futures prices for natural gas for November delivery in the United States increased by 2.07% to $2.959 per million British thermal units (BTUs) before the release of the US gas inventories data. However, following the data release, natural gas prices trimmed their gains, recording a 1.62% increase at $2.946 per million BTUs.
Significance of US Natural Gas Inventories Data
It’s worth noting that the US Energy Information Administration releases weekly data on natural gas inventories, measuring the change in underground natural gas storage in cubic feet for the past week.
While this indicator is fundamentally American, it does affect the Canadian dollar due to the size of Canada’s energy sector. Additionally, it has a significant impact on natural gas prices in commodity market trading.
