Natural gas prices have fallen for a fourth day in a row on Friday after the Energy Information Association (EIA) announced that U.S. inventories for the commodity were larger than projected, the Binary Tribune reported.
The Binary Tribune reported that on the New York Mercantile Exchange, natural gas for delivery in November dropped 0.5 percent to $3.777 per million British thermal units by 11:34 GMT. Prices stayed within a daily range of $3.817-$3.767. The power-station fuel fell by 0.11% to $3.796 per mBtu on Thursday, marking its third straight daily decline. Yesterday, the EIA reported that US natural gas inventories increased by 94 billion cubic feet in the week through October 10. This greatly exceeded analysts' projections for a build in the range of 89-92 billion cubic feet and the five-year national average gain of 78 billion.
Bloomberg Businessweek noted that natural gas stockpiles are high due to the mild weather that most of the U.S. has experienced over the last few weeks.
"We thought we'd see persistent cold during October and the reason gas prices slid over the last two weeks is that the early forecast is simply not verifying," Teri Viswanath, director of commodities strategy at BNP Paribas SA in New York, to Businessweek.
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