Investing.com – Natural gas futures edged lower on Wednesday, pulling back from a three-day high as some mild-profit taking emerged after Tuesday’s sharp gains.
On the New York Mercantile Exchange, natural gas futures for October delivery traded at USD3.979 per million British thermal units during U.S. morning trade, easing down 0.1%.
It earlier fell as much as 0.7% to trade at a daily low of USD3.956 per million British thermal units.
Natural gas prices jumped nearly 2.5% on Tuesday to hit USD4.016 per million British thermal units, the highest since September 8 as cooler weather forecasts across the U.S. Midwest states boosted heating demand expectations for the fuel.
However, the rally prompted some investors to sell their position and lock in gains on speculation that the previous day’s rally had accounted for the boost to cooling needs.
The Commodity Weather Group said in a report earlier in the day that the coming cold front is “unlikely to significantly affect natural gas inventories, but the cold wave heralds a winter that is expected to be colder than normal.”
Natural gas futures often reach a seasonal low in October, when mild weather reduces demand, before recovering in the winter, when heating-fuel use peaks.
The weather group added that there was no threat of Gulf of Mexico hurricanes on the horizon, as Tropical Storm Nate continued to weaken as the storm moved west-southwest over Mexico.
Meanwhile, markets were looking forward to the U.S. Energy Information Administration’s weekly report on U.S. natural gas stockpiles for the week ended September 9 on Thursday.
The report was expected to show that U.S. natural gas inventories increased by 80 billion cubic feet, after adding 64 billion cubic feet in the preceding week.
Elsewhere on the Nymex, light sweet crude oil futures for delivery in October fell 1.34% to trade at USD89.06 a barrel, while heating oil for October delivery shed 0.3% to trade at USD2.928 per gallon.
On the New York Mercantile Exchange, natural gas futures for October delivery traded at USD3.979 per million British thermal units during U.S. morning trade, easing down 0.1%.
It earlier fell as much as 0.7% to trade at a daily low of USD3.956 per million British thermal units.
Natural gas prices jumped nearly 2.5% on Tuesday to hit USD4.016 per million British thermal units, the highest since September 8 as cooler weather forecasts across the U.S. Midwest states boosted heating demand expectations for the fuel.
However, the rally prompted some investors to sell their position and lock in gains on speculation that the previous day’s rally had accounted for the boost to cooling needs.
The Commodity Weather Group said in a report earlier in the day that the coming cold front is “unlikely to significantly affect natural gas inventories, but the cold wave heralds a winter that is expected to be colder than normal.”
Natural gas futures often reach a seasonal low in October, when mild weather reduces demand, before recovering in the winter, when heating-fuel use peaks.
The weather group added that there was no threat of Gulf of Mexico hurricanes on the horizon, as Tropical Storm Nate continued to weaken as the storm moved west-southwest over Mexico.
Meanwhile, markets were looking forward to the U.S. Energy Information Administration’s weekly report on U.S. natural gas stockpiles for the week ended September 9 on Thursday.
The report was expected to show that U.S. natural gas inventories increased by 80 billion cubic feet, after adding 64 billion cubic feet in the preceding week.
Elsewhere on the Nymex, light sweet crude oil futures for delivery in October fell 1.34% to trade at USD89.06 a barrel, while heating oil for October delivery shed 0.3% to trade at USD2.928 per gallon.