Investing.com – Natural gas futures down for the first time in four days on Wednesday, pulling back from a one-week high on forecasts of moderating temperatures that would reduce demand for the fuel.
On the New York Mercantile Exchange, natural gas futures for August delivery traded at USD4.311 per million British thermal units during U.S. morning trade, slumping 1.2%.
It earlier fell as much as 1.8% to trade at a daily low of USD4.282 per million British thermal units. Natural gas prices rose to a one-week high of USD4.377 on Tuesday.
Earlier in the day, industry weather group MDA Federal said that it now expected mostly normal temperatures across the continental U.S. from July 5 to July 9.
The weather forecaster had previously called for “unseasonably” hot temperatures in the U.S. Great Lakes and mid-Atlantic region next week.
Meanwhile, the Commodity Weather Group said that July was likely to be warmer than previously thought, though not as hot as last summer, when above-average heat lifted demand for gas to power air conditioners to almost record levels.
In its seasonal outlook published earlier in the day, the weather group said, “Our updated July outlook in the past two weeks is still nowhere near as cool as the original expectation, but it does continue to shed cooling degree days, and it is quite a bit cooler than July 2010."
Natural gas traders monitor weather forecasts to determine whether temperatures may boost heating or cooling demand. Predictions of below-average or above-average temperatures may prompt traders to buy or sell gas futures.
Markets were looking forward to the U.S. Energy Information Administration’s weekly report on U.S. natural gas stockpiles for the week ended June 24 on Thursday.
The report was expected to show that U.S. natural gas inventories increased by 80 billion cubic feet, after adding 98 billion cubic feet in the preceding week.
Elsewhere, light sweet crude oil futures for delivery in August jumped 1.6% to trade at USD94.31 a barrel, while heating oil for August delivery rallied 2.3% to trade at USD2.901 per gallon during U.S. morning trade.
On the New York Mercantile Exchange, natural gas futures for August delivery traded at USD4.311 per million British thermal units during U.S. morning trade, slumping 1.2%.
It earlier fell as much as 1.8% to trade at a daily low of USD4.282 per million British thermal units. Natural gas prices rose to a one-week high of USD4.377 on Tuesday.
Earlier in the day, industry weather group MDA Federal said that it now expected mostly normal temperatures across the continental U.S. from July 5 to July 9.
The weather forecaster had previously called for “unseasonably” hot temperatures in the U.S. Great Lakes and mid-Atlantic region next week.
Meanwhile, the Commodity Weather Group said that July was likely to be warmer than previously thought, though not as hot as last summer, when above-average heat lifted demand for gas to power air conditioners to almost record levels.
In its seasonal outlook published earlier in the day, the weather group said, “Our updated July outlook in the past two weeks is still nowhere near as cool as the original expectation, but it does continue to shed cooling degree days, and it is quite a bit cooler than July 2010."
Natural gas traders monitor weather forecasts to determine whether temperatures may boost heating or cooling demand. Predictions of below-average or above-average temperatures may prompt traders to buy or sell gas futures.
Markets were looking forward to the U.S. Energy Information Administration’s weekly report on U.S. natural gas stockpiles for the week ended June 24 on Thursday.
The report was expected to show that U.S. natural gas inventories increased by 80 billion cubic feet, after adding 98 billion cubic feet in the preceding week.
Elsewhere, light sweet crude oil futures for delivery in August jumped 1.6% to trade at USD94.31 a barrel, while heating oil for August delivery rallied 2.3% to trade at USD2.901 per gallon during U.S. morning trade.