Natural-gas futures dropped to a one-month low this week after an increase in U.S. gas inventories renewed concerns about the massive domestic supply glut. Natural gas for July delivery fell 14.7 cents, or 6.1%, to settle at $2.274 a million British thermal units on the New York Mercantile Exchange, the lowest settlement since May 2. The U.S. Energy Department reported natural gas stockpiles rose by 62 billion cubic feet last week, above estimates calling for a 57-bcf jump. The increase pushed total U.S. stockpiles to 2.877 trillion cubic feet, the highest ever for this time of year and 33% above the five-year average.
The glut, caused by surging production in shale-gas fields, has pushed prices to near-decade lows.
Typically, gas storage rises through the spring and summer months, and starts to decline in winter as businesses and consumers burn the fuel for heat. But a mild winter across the U.S. this year led to record storage levels heading into the spring. (WSJ, 6/7/2012)
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