Investing.com - Natural gas futures were lower for the fifth consecutive day on Wednesday, falling to a three-week low as market players looked ahead to a closely watched U.S. government report on natural gas supplies on Thursday.
Forecasts showing above-normal winter temperatures across key parts of the U.S. in the next two weeks also weighed.
On the New York Mercantile Exchange, natural gas futures for delivery in January traded at USD3.405 per million British thermal units during U.S. morning trade, down 0.25% on the day.
It earlier fell by as much as 2.2% to trade at a session low of USD3.388 per million British thermal units, the weakest level since October 9.
Early estimates for this week’s storage data range from a build of 6 billion cubic feet to a drawdown of 27 billion cubic feet.
Inventories fell by 79 billion cubic feet in the same week a year earlier, while the five-year average change for the week is a decline of 113 billion cubic feet.
Total U.S. natural gas storage stood at 3.804 trillion cubic feet as of last week, 0.9% below last year’s level, but still 4.6% above the five-year average for this time of year, according to U.S. Energy Department data.
In March, after an exceptionally warm winter, stockpiles were approximately 60% above five-year levels.
Meanwhile, forecasts showing mild winter temperatures across most parts of the heavily populated U.S. Northeast in the next two weeks continued to dampen sentiment on the heating fuel.
The U.S. Northeast is a key gas-heating area. Mild winter temperatures reduce the need for gas-fired electricity to heat homes, reducing demand for natural gas.
Natural gas prices have closely tracked weather forecasts in recent weeks, as traders try to gauge the impact of shifting forecasts on winter heating demand.
The heating season from November through March is the peak demand period for U.S. gas consumption.
Natural gas futures touched a 14-month high of USD4.001 per million British thermal units on November 26, amid expectations of a cold winter and an increase in heating demand.
But prices fell sharply after forecasters revised their weather outlooks for the period, saying early December temperatures should be warmer-than-normal.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in January jumped 1.35% to trade at USD86.98 a barrel, while heating oil for January delivery rallied 2.4% to trade at USD2.996 per gallon.
Forecasts showing above-normal winter temperatures across key parts of the U.S. in the next two weeks also weighed.
On the New York Mercantile Exchange, natural gas futures for delivery in January traded at USD3.405 per million British thermal units during U.S. morning trade, down 0.25% on the day.
It earlier fell by as much as 2.2% to trade at a session low of USD3.388 per million British thermal units, the weakest level since October 9.
Early estimates for this week’s storage data range from a build of 6 billion cubic feet to a drawdown of 27 billion cubic feet.
Inventories fell by 79 billion cubic feet in the same week a year earlier, while the five-year average change for the week is a decline of 113 billion cubic feet.
Total U.S. natural gas storage stood at 3.804 trillion cubic feet as of last week, 0.9% below last year’s level, but still 4.6% above the five-year average for this time of year, according to U.S. Energy Department data.
In March, after an exceptionally warm winter, stockpiles were approximately 60% above five-year levels.
Meanwhile, forecasts showing mild winter temperatures across most parts of the heavily populated U.S. Northeast in the next two weeks continued to dampen sentiment on the heating fuel.
The U.S. Northeast is a key gas-heating area. Mild winter temperatures reduce the need for gas-fired electricity to heat homes, reducing demand for natural gas.
Natural gas prices have closely tracked weather forecasts in recent weeks, as traders try to gauge the impact of shifting forecasts on winter heating demand.
The heating season from November through March is the peak demand period for U.S. gas consumption.
Natural gas futures touched a 14-month high of USD4.001 per million British thermal units on November 26, amid expectations of a cold winter and an increase in heating demand.
But prices fell sharply after forecasters revised their weather outlooks for the period, saying early December temperatures should be warmer-than-normal.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in January jumped 1.35% to trade at USD86.98 a barrel, while heating oil for January delivery rallied 2.4% to trade at USD2.996 per gallon.