Natural gas for December delivery fell 5.1 cents to settle at $3.566 per million British thermal units in New York yesterday, breaking a six-day streak of gains, after prices on Tuesday rose to $3.617, the highest closing price since Oct.30.
Natural gas futures dropped from a two-week high in New York amid speculation that a government report tomorrow will show a U.S. inventory gain that’s above average for this time of year.
Gas slid 1.4 percent as the Energy Information Administration may say stockpiles expanded by 22 billion cubic feet last week, based on the median of 18 analyst estimates compiled by Bloomberg. Estimates ranged from gains of 2 billion to 33 billion. The five-year average injection for the week is 19 billion. Supplies fell 12 billion a year earlier.
“The concern is that we still have ample supplies to meet this upcoming heating demand,” said Teri Viswanath, director of commodities strategy at BNP Paribas in New York. “That, combined with expectations of continued production growth, is making investors think twice about running this up.”
The U.S. raised its production forecast for 2013 by 0.4 percent to 70.29 billion cubic feet a day from 70 billion the previous month, the EIA said today in its Short-Term Energy Outlook . Output will climb 1.6 percent from the 2012 record of 69.18 billion.