FUTURES MOVERSNatural gas rallies; data at low end of...

FUTURES MOVERS
Natural gas rallies; data at low end of estimates

E-mail | Print | | Disable live quotes By Ciara Linnane, MarketWatch
Last Update: 4:14 PM ET Jun 15, 2006


NEW YORK (MarketWatch) -- Natural-gas futures rallied for a second session Thursday, buoyed by warm-weather forecasts for much of the U.S. over the next few days and after supply data for the latest week came in on the soft side.
Natural gas for July delivery closed up 61.7 cents, or 9.4%, at $7.207 per million British thermal units on the New York Mercantile Exchange. The contract extended a 7% rally from Wednesday, when worry about the potential destructive power of this year's hurricane season ignited supply concerns, while expectations hot weather will encourage consumers to crank up air-conditioning systems raised the demand outlook.
Earlier, the Energy Department said natural gas in storage increased by 77 billion cubic feet in the week ended June 9.
Analysts were forecasting a build ranging from 72 to 109 billion cubic feet, with most estimates clustered around the high 80 billion cubic-foot range, according to Fimat USA. Fimat itself was expecting an 84 billion cubic-foot build.
"The 77 bcf addition to storage in today's report were below average and on the low end of expectations," said James Williams, energy economist at WTRG Economics. "This, coupled with forecasts of warmer than normal weather for the next week and the higher demand for cooling that implies, will support yesterday's price increase."
Still, supplies are 451 billion cubic feet above their level at the same time a year ago and 659 billion cubic feet above the 5-year average, according to the government. But that is little comfort to traders, said Williams.
"Even with the bullish injection, the overall level of storage remains bearish with prices supported more by hurricane fears than the actual numbers,' he said.

Cheers

IMHO
DYOR