Oil & Energy
US Natural Gas Update: Futures Slide Over 2% Amid Strong Storage Figures, Potential US-Iran Talks
US natural gas futures were down by nearly 3% on Friday, amid robust storage figures, and reports of progress being made in the peace negotiations between Iran and the US.The front-month Henry Hub contract and the continuous contract were both down 2.54% at $2.69 per million British thermal units. The benchmark was set to end the week down by 5.32%, according to data from Trading Economics.The move comes following a larger-than-expected injection into storage for the week ended April 17, at 103 billion cubic feet, bringing total storage to 2,063 Bcf, according to the US Energy Information Administration's Weekly Natural Gas Storage Report on Thursday.This was ahead of forecasts, which expected 96 Bcf in injections, and was significantly higher than the prior week at 59 Bcf and the corresponding week a year ago, at 88 Bcf, according to data compiled by Investing.com.US natural gas inventories are now 142 Bcf, or 7% above the year-ago levels, and 137 Bcf, and the same 7% above the five-year average for this time of year, making it a very bearish inventory build-up for the market.According to Pinebrook Energy Advisors, this week's injection was the "largest on record for this early in the season," which they attributed to lower weather-related demand in recent weeks.Weather forecasts have, however, flipped in recent days, with nearly half of the country set to experience below-normal temperatures from May 01 to May 07, according to the National Weather Service.On the geopolitical front, Iran's Foreign Minister Seyyed Abbas Araghchi is reportedly on his way to Islamabad, Pakistan, with US Logistics and Security teams already in place to prepare for the next round of peace negotiations, according to a Reuters report, citing three Pakistani officials.While neither side has made any announcements so far, this marks a major de-escalation in the conflict, following several days of mounting uncertainties.