Investing.com – Natural gas futures pared gains on Tuesday, as investors cashed out of the market to lock in gains from a rally that took prices to a three-week peak.
On the New York Mercantile Exchange, natural gas futures for June delivery traded at USD4.337 per million British thermal units during U.S. morning trade, edging 0.1% higher.
Earlier in the day, natural gas futures rose by as much as 1.2% to USD4.397, the highest price since May 5, amid indications of increased demand after forecasts showed warmer-than-normal temperatures across much of the U.S. through late May.
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.
Industry weather group MDA Federal said that temperatures should be warmer-than-normal from the Gulf Coast through the upper U.S. Midwest and parts of the Northeast through late May.
The warmth is seen lingering through next weekend along the East Coast, however temperate weather expected elsewhere limited the boost to gas demand.
Meanwhile, the National Oceanic and Atmospheric Administration is schedule to release both its June-August forecast for U.S. temperatures and its Atlantic hurricane season forecasts on Wednesday.
Any signs of warmer summer temperatures for much of the nation would boost demand expectations for the fuel and support prices.
Elsewhere, light sweet crude oil futures for delivery in July surged 2.3% to trade at USD99.78 a barrel, while heating oil for June delivery jumped 2.1% to trade at USD2.907 per gallon during U.S. morning trade.
On the New York Mercantile Exchange, natural gas futures for June delivery traded at USD4.337 per million British thermal units during U.S. morning trade, edging 0.1% higher.
Earlier in the day, natural gas futures rose by as much as 1.2% to USD4.397, the highest price since May 5, amid indications of increased demand after forecasts showed warmer-than-normal temperatures across much of the U.S. through late May.
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.
Industry weather group MDA Federal said that temperatures should be warmer-than-normal from the Gulf Coast through the upper U.S. Midwest and parts of the Northeast through late May.
The warmth is seen lingering through next weekend along the East Coast, however temperate weather expected elsewhere limited the boost to gas demand.
Meanwhile, the National Oceanic and Atmospheric Administration is schedule to release both its June-August forecast for U.S. temperatures and its Atlantic hurricane season forecasts on Wednesday.
Any signs of warmer summer temperatures for much of the nation would boost demand expectations for the fuel and support prices.
Elsewhere, light sweet crude oil futures for delivery in July surged 2.3% to trade at USD99.78 a barrel, while heating oil for June delivery jumped 2.1% to trade at USD2.907 per gallon during U.S. morning trade.