Natural gas futures gained in New York after declining yesterday on speculation that government data will show a larger-than-normal increase in stockpiles of the power-plant fuel.
Futures for October delivery rose as much as 0.5 percent to $3.602 per million British thermal units in electronic trading today on the New York Mercantile Exchange and was at $3.585 at 2:39 p.m. in Singapore. The contract declined 0.6 percent yesterday.
An Energy Information Administration report scheduled for release tomorrow may show inventories grew by 65 billion cubic feet in the week ended Sept. 6, according to the median of six analyst estimates compiled by Bloomberg. The five-year average gain for the week is 62 billion.
“The storage injection possibly coming in above average is putting pressure on the market,” Phil Flynn, a senior market analyst at Price Futures Group in Chicago said yesterday. “We had a little bit of a drop in demand last week and inventories are starting to catch up.”
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