Natural Gas Edges Lower

Natural gas prices were trading lower early on Friday despite a heat-wave in high demand regions as production continues to outstrip demand, with the U.S. Energy Information Administration a day earlier reporting another big build in stored supplies.

Gas for August delivery was last seen down US$0.01 to US$2.28 per million British thermal units in Nymex electronic trade, the lowest since July 1.

The drop came even as the Midwest and parts of the Northeast swelter, with temperatures in Chicago forecast to be near 100 degrees Fahrenheit on Friday.

However despite the heat, gas continues to flow to storage, with the EIA on Thursday reporting a 62 billion cubic foot rise in inventories last week, pushing stocks to 2.53 trillion cubic feet, 13% above year prior levels and 5.3% under the five-year average.