Investing.com - Natural gas futures retreated from the previous session’s two-week high on Tuesday, as updated weather forecasts showed mild weather was expected during the next five days throughout most of the U.S.
Forecasts originally called for warmer-than-average weather during the period.
On the New York Mercantile Exchange, natural gas futures for delivery in August traded at USD3.656 per million British thermal units during U.S. morning trade, down 2.3% on the day.
The August contract fell by as much as 2.5% earlier in the day to hit a session low of USD3.646 per million British thermal units.
Futures rallied nearly 3% on Monday to hit USD3.762, the strongest level since June 24, after weather forecasting models pointed to warmer-than-normal temperatures in the U.S. Northeast and Midwest over the next five days.
But futures gave back most of those gains after forecasts turned milder, dampening demand expectations for the fuel.
The U.S. National Weather Service’s six- to 10-day forecast called for above-normal temperatures for the Northeast and New England, while normal or below-normal readings were expected in the remainder of the nation.
Demand for natural gas tends to fluctuate in the summer based on hot weather and air conditioning use.
Meanwhile, easing concerns over a disruption to supplies in the Gulf of Mexico further weighed after the U.S. National Hurricane Center said Tropical Storm Chantal was near Barbados early Tuesday and expected to move into the eastern Caribbean Sea later in the day.
U.S. supply levels also remained in focus. Total U.S. natural gas storage stood at 2.605 trillion cubic feet as of last week, just 1.1% below the five-year average and 16% below last year's level.
Early injection estimates for this week’s storage data range from 82 billion cubic feet to 102 billion cubic feet, compared to a 34 billion cubic feet increase during the same week a year earlier.
The five-year average for the week is a build of 71 billion cubic feet.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in August fell 0.3% to trade at USD102.85 a barrel, while heating oil for August delivery shed 0.1% to trade at USD2.977 per gallon.
Forecasts originally called for warmer-than-average weather during the period.
On the New York Mercantile Exchange, natural gas futures for delivery in August traded at USD3.656 per million British thermal units during U.S. morning trade, down 2.3% on the day.
The August contract fell by as much as 2.5% earlier in the day to hit a session low of USD3.646 per million British thermal units.
Futures rallied nearly 3% on Monday to hit USD3.762, the strongest level since June 24, after weather forecasting models pointed to warmer-than-normal temperatures in the U.S. Northeast and Midwest over the next five days.
But futures gave back most of those gains after forecasts turned milder, dampening demand expectations for the fuel.
The U.S. National Weather Service’s six- to 10-day forecast called for above-normal temperatures for the Northeast and New England, while normal or below-normal readings were expected in the remainder of the nation.
Demand for natural gas tends to fluctuate in the summer based on hot weather and air conditioning use.
Meanwhile, easing concerns over a disruption to supplies in the Gulf of Mexico further weighed after the U.S. National Hurricane Center said Tropical Storm Chantal was near Barbados early Tuesday and expected to move into the eastern Caribbean Sea later in the day.
U.S. supply levels also remained in focus. Total U.S. natural gas storage stood at 2.605 trillion cubic feet as of last week, just 1.1% below the five-year average and 16% below last year's level.
Early injection estimates for this week’s storage data range from 82 billion cubic feet to 102 billion cubic feet, compared to a 34 billion cubic feet increase during the same week a year earlier.
The five-year average for the week is a build of 71 billion cubic feet.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in August fell 0.3% to trade at USD102.85 a barrel, while heating oil for August delivery shed 0.1% to trade at USD2.977 per gallon.