Natural-gas prices trim advance after inventories report
By Claudia Assis and Kate Gibson, MarketWatch
SAN FRANCISCO (MarketWatch) -- Crude-oil futures gained nearly 3% Thursday, as investors took heart that a mostly upbeat slate of corporate results could translate in a pickup for energy demand.
Crude oil for September delivery gained $2.21, or 2.8%, to $78.73 a barrel on the New York Mercantile Exchange.
"Earnings have been a little bit positive, which brought stocks back up, and also brought back up the price of oil," said Phil Flynn, an analyst at PFG Best.
"We're bouncing back after bleak Ben gave his downbeat assessment," added Flynn, referring to Federal Reserve Chairman Ben Bernanke, who began on Wednesday two days of a semiannual address to Congress.
The contract fell $1.02, or 1.3%, to settle at $76.56 a barrel Wednesday, pressured by an unexpected increase in oil inventories and comments from Bernanke about the uncertain economic outlook.
Meanwhile, natural-gas futures only slightly trimmed their advance after an inventories report showed an increase for the week ended July 16, but one that was largely expected.
Natural gas for September delivery, the most active contract, added 13 cents, or 2.9%, to $4.62 per million British thermal units.
The Energy Information Administration on Thursday reported an increase of 51 billion cubic feet in inventories for the week ended July 16. That compares to the 70-bcf addition in the same week of 2009 and a five-year average increase of 64 bcf.
Analysts polled by Platts had expected an increase of 49 bcf to 53 bcf.
"The 51-bcf build in U.S. natural-gas storage for last week was basically on expectations," Tim Evans, an analyst with Citigroup's Citi Futures Perspective, said in a note. "This also tends to affirm supportive guidance for below average injections in the next two reports. There's certainly not a bearish aspect to this, unless it simply isn't bullish enough to wedge prices higher."
Reformulated gasoline for September delivery, also the most active contract, rose 6 cents, or 3%, to $2.13 a gallon.
U.S. stocks opened sharply higher after mostly positive earnings, with the mood only slightly dampened by a rise in weekly U.S. jobless claims. Read more about U.S. markets.
