Total stocks now stand at 3.389 trillion cubic feet, up 410 billion cubic feet from the year-ago level, and 358 billion cubic feet above the five-year average, the government data said. November natural gas shed 9 cents, or 1.5%, to $6.06 per million British thermal units.
Crude oil remained well below $60 a barrel on the New York Mercantile Exchange on Thursday after a government report said U.S. inventories increased by 2.4 million barrels last week.
Crude oil inventories, excluding the Strategic Petroleum Reserve, swelled to 330.5 million barrels, the Energy Information Administration reported.
"U.S. crude oil inventories remain well above the upper end of the average range for this time of year," the government reported
On Thursday, crude oil recently traded at $57.61 on the New York Mercantile Exchange. The price peaked July 14 at $78.40 a barrel and slid to $57.24 earlier today, a decline of 27% and the lowest price since December 19, 2005.
On Wednesday, OPEC said it will cut production by one million barrels a day in November and the markets yawned. Traditionally, OPEC has difficulty enforcing its edicts. Members routinely pump more oil when prices are high and do the same when prices fall to keep the cash flowing, analysts said.
This week, Saudi Arabia said volumes to Asia and Europe won't be affected in November.
October is often tough on oil prices. The summer driving season is long gone and the winter heating season hasn't begun in most part of the country. Many refineries use the slack time to make routine repairs or needed upgrades, further reducing the demand for crude oil.
Prices spiked last fall when hurricanes ripped through the Gulf of Mexico, disrupting production. The region hasn't been hit by a major storm this year.
Gasoline inventories grew by 0.3 million barrels last week, and are above the upper end of the average range for this time of year, the Energy Department's statistical agency said.
U.S. refineries handled an average of 15.3 million barrels a day during the week of October 6, up 23,000 barrels a day from the previous week. Refineries operated at 89.2% of capacity.
Gasoline production dropped slightly last week, averaging 8.9 million barrels a day, the government reported.
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