Natural gas futures fell the most in two months after a government report showed a bigger-than-estimated increase in U.S. stockpiles, according to a report by Bloomberg (www.bloomberg.com).
Citing a Department of Energy (www.energy.gov) report, Bloomberg says supplies in storage gained 66 billion cubic feet in the week ended July 31 to 3.089 trillion cubic feet, far exceeding analysts forecasts for a gain of 61 billion. The total was a record for late July, based on weekly department data going back to 1994.
As a result, natural gas for September delivery fell 29.9 cents, or 7.4 percent, to settle at $3.743 per million British thermal units at 2:58 p.m. on the New York Mercantile Exchange, the biggest one-day decline since June 3, according to Bloomberg. Gas has dropped 33 percent this year, notes Bloomberg.
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