Nat gas prices fall after EIA inventories report

SAN FRANCISCO (MarketWatch) -- Natural gas prices sank into the red Thursday after a weekly report on inventories showed a rise on the higher end of expectations. Natural gas for September delivery declined 6 cents, or 1.6%, to $3.81 per million British thermal units. A close around these levels would be the lowest in 11 months. The Energy Information Administration on Thursday reported a net injection of 40 billion cubic feet to natural gas storages for the week ended Aug. 20. Analysts surveyed by Platts had expected an increase of 37 to 41 billion cubic feet. The increase compares to a 53 billion cubic feet injection in the comparable 2009 week and a five-year-average of 59 billion cubic feet. This was the tenth consecutive week with net injections below or within expectations, but futures have routinely fallen as production is still seen on the high side.