Investing.com – Natural gas futures were down on Wednesday, pulling back from a two-day high amid a moderating weather outlook in the U.S., while investors sold off August contracts to lock in gains before they were set to expire at the end of the day.
On the New York Mercantile Exchange, natural gas futures for August delivery traded at USD4.362 per million British thermal units during U.S. morning trade, slumping 0.4%.
The August natural gas contract was due to expire at the end of trading on Wednesday.
Meanwhile, the more actively traded contract for September delivery traded at USD4.324, shedding 0.3%.
Industry weather group MDA Federal said earlier that it expected temperatures of extreme heat to moderate in the U.S. Midwestern states towards the end of July and early August.
The weather group said in a report that, “While temperatures were still plenty hot, compared to last week’s record- breaking heat this next round should be less impressive, with just some borderline ‘much-aboves’ present for a couple of days.”
Natural gas traders monitor weather forecasts to determine whether temperatures may boost heating or cooling demand.
Predictions of below-average or above-average temperatures may prompt traders to buy or sell gas futures.
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 July 22 on Thursday.
The report was expected to show that U.S. natural gas inventories increased by 38 billion cubic feet, after adding 60 billion cubic feet in the preceding week.
The five-year average change for the week is an increase of 49 billion, according to Energy Department data. Supplies climbed 31 billion cubic feet a year earlier.
Elsewhere on the Nymex, light sweet crude oil futures for delivery in September sank 1.4% to trade at USD98.06 a barrel, while heating oil for September delivery shed 0.4% to trade at USD3.108 per gallon.
On the New York Mercantile Exchange, natural gas futures for August delivery traded at USD4.362 per million British thermal units during U.S. morning trade, slumping 0.4%.
The August natural gas contract was due to expire at the end of trading on Wednesday.
Meanwhile, the more actively traded contract for September delivery traded at USD4.324, shedding 0.3%.
Industry weather group MDA Federal said earlier that it expected temperatures of extreme heat to moderate in the U.S. Midwestern states towards the end of July and early August.
The weather group said in a report that, “While temperatures were still plenty hot, compared to last week’s record- breaking heat this next round should be less impressive, with just some borderline ‘much-aboves’ present for a couple of days.”
Natural gas traders monitor weather forecasts to determine whether temperatures may boost heating or cooling demand.
Predictions of below-average or above-average temperatures may prompt traders to buy or sell gas futures.
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 July 22 on Thursday.
The report was expected to show that U.S. natural gas inventories increased by 38 billion cubic feet, after adding 60 billion cubic feet in the preceding week.
The five-year average change for the week is an increase of 49 billion, according to Energy Department data. Supplies climbed 31 billion cubic feet a year earlier.
Elsewhere on the Nymex, light sweet crude oil futures for delivery in September sank 1.4% to trade at USD98.06 a barrel, while heating oil for September delivery shed 0.4% to trade at USD3.108 per gallon.