The futures contract for natural gas fell to its lowest level on record Thursday following the government announcement that supplies increased for the initial time in 2010, adding excess reserves to already swollen supplies
Over the winter, the U.S. required more gas to heat homes and operate power generators as a result of the adverse weather conditions, but even that was not enough to negate the surpluses that have been mounting for several years.
There is approximately 1.63 trillion cubic feet of natural gas in reserves at present, 8 percent above the five-year average, according to the Energy Information Administration.
On the New York Mercantile Exchange Thursday, Natural gas slated April delivery fell 15.9 cents, or 4 percent, to $3.946 per 1,000 cubic feet, up from Thursday lows of $3.940.
Oil prices increased on Thursday; however, following the latest figures from the Labor Department that indicated jobless benefits fell more than anticipated in the week ending March 20. Benchmark crude slated for May delivery tacked on 52 cents to trade at $81.13 a barrel.
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