Investing.com – Natural gas futures declined for the first time in seven days on Monday, as investors cashed out of the market to lock in gains from a rally that took prices to a one-month high in the previous session.
On the New York Mercantile Exchange, natural gas futures for August delivery traded at USD4.532 per million British thermal units during U.S. morning trade, shedding 0.48%.
It earlier fell as much as 1.5% to trade at a daily low of USD4.481 per million British thermal units.
Natural gas prices rallied nearly 7.1% last week to hit USD4.563, the highest price since June 16, amid indications of increased demand after forecasts showed extremely warmer-than-normal temperatures across much of the U.S. in the next two weeks.
The U.S. National Weather Service said on Friday that weather patterns indicated a "massive" heat wave would develop over the central and Eastern U.S. states next week.
However, the rally prompted some investors to sell their position on profit taking and lock in gains on speculation that the market’s recent rally had accounted for the boost to cooling needs.
Meanwhile, concerns over rising production levels weighed on prices.
Industry research group Baker Hughes said on Friday that the number of active rigs drilling for natural gas in the U.S. last week rose to 885 from 873, the highest amount in six weeks and the third gain in four weeks.
Natural gas traders closely watch the rig count to gauge supply growth. The rig count has dropped sharply from a recent peak of 992 last August, but the current level of activity is still widely expected to lead to further production gains.
Many analysts believe the gas-rig count must decline to close to 800 to balance production with demand.
Elsewhere, light sweet crude oil futures for delivery in September tumbled 2.68% to trade at USD95.11 a barrel, while heating oil for August delivery sank 2.31% to trade at USD3.055 per gallon during U.S. morning trade.
On the New York Mercantile Exchange, natural gas futures for August delivery traded at USD4.532 per million British thermal units during U.S. morning trade, shedding 0.48%.
It earlier fell as much as 1.5% to trade at a daily low of USD4.481 per million British thermal units.
Natural gas prices rallied nearly 7.1% last week to hit USD4.563, the highest price since June 16, amid indications of increased demand after forecasts showed extremely warmer-than-normal temperatures across much of the U.S. in the next two weeks.
The U.S. National Weather Service said on Friday that weather patterns indicated a "massive" heat wave would develop over the central and Eastern U.S. states next week.
However, the rally prompted some investors to sell their position on profit taking and lock in gains on speculation that the market’s recent rally had accounted for the boost to cooling needs.
Meanwhile, concerns over rising production levels weighed on prices.
Industry research group Baker Hughes said on Friday that the number of active rigs drilling for natural gas in the U.S. last week rose to 885 from 873, the highest amount in six weeks and the third gain in four weeks.
Natural gas traders closely watch the rig count to gauge supply growth. The rig count has dropped sharply from a recent peak of 992 last August, but the current level of activity is still widely expected to lead to further production gains.
Many analysts believe the gas-rig count must decline to close to 800 to balance production with demand.
Elsewhere, light sweet crude oil futures for delivery in September tumbled 2.68% to trade at USD95.11 a barrel, while heating oil for August delivery sank 2.31% to trade at USD3.055 per gallon during U.S. morning trade.