Natural Gas Will Be The “Big Winner” Of Energy Sector, IEA Says
Natural gas futures reversed higher on Friday after a decline yesterday which stemmed from the weekly report by the U.S. Energy Information Administration.
According the government data, supplies of the commodity rose 30 billion cubic feet for the week ended Nov. 11, sending total stocks to 4.047 trillion cubic feet, up 51 billion cubic feet from a year ago and 216 billion cubic feet above the five-year average.
Natural gas futures for December delivery soared to the highest level since November 08th at $2.846 per million British thermal units on Friday set to close the week higher for the first time in 5 weeks. The upbeat moves were partly due to weather forecast on Wednesday showed that cooler weather could begin to appear in Eastern population centers.
Also supporting the rally, the International Energy Agency (IEA) has said that major transformations in the global energy system will bolster demand for renewables and natural gas. The IEA published its World Energy Outlook 2016 report on Friday, stating that considering improvements in energy efficiency over the next 25 years, natural gas will continue to expand its role while the shares of coal and oil fall back.
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