Investing.com – Natural gas futures were down for a third day on Wednesday, dropping to a three-week low amid expectations for reduced demand after forecasts showed mild weather in the Northeastern U.S. states next week.
On the New York Mercantile Exchange, natural gas futures for July delivery traded at USD4.546 pr million British thermal units during U.S. morning trade, slumping 0.65%
It earlier fell to USD4.522 per million British thermal units, the lowest price since May 27.
The Commodity Weather Group said the weather will be cooler-than-normal in the Northeast U.S. states through June 21, saying temperatures will stay “benign” throughout the period.
Weather service provider AccuWeather said that New York was expected to have a seasonally normal high of 79 degrees Fahrenheit (26 Celsius) on June 19. The city had a high of 95 degrees on June 9.
Global financial service provider Barclays said in a report published late Tuesday, “The market lost recent support as temperatures have moved lower from last week's record highs to more normal levels."
Meanwhile, a government report showing that industrial production in the U.S. rose less-than-expected in May weighed on prices.
The Federal Reserve said that industrial production rose by a seasonally adjusted 0.1% in May, after remaining flat in April. Analysts had expected industrial production to rise by 0.2% in May.
Industrial consumers account for 28% of U.S. gas demand, according to the U.S. Energy Department.
Markets were looking forward to the U.S. Energy Information Administration’s weekly report on U.S. natural gas stockpiles for the week ended June 10 on Thursday.
The report was expected to show that U.S. natural gas inventories increased by 67 billion cubic feet, after adding 80 billion cubic feet in the preceding week. The five-year average change for the week is an increase of 87 billion cubic feet.
Elsewhere, light sweet crude oil futures for delivery in July edged 0.4% lower to trade at USD98.89 a barrel, while heating oil for July delivery declined 1.15% to trade at USD3.089 per gallon during U.S. morning trade.
On the New York Mercantile Exchange, natural gas futures for July delivery traded at USD4.546 pr million British thermal units during U.S. morning trade, slumping 0.65%
It earlier fell to USD4.522 per million British thermal units, the lowest price since May 27.
The Commodity Weather Group said the weather will be cooler-than-normal in the Northeast U.S. states through June 21, saying temperatures will stay “benign” throughout the period.
Weather service provider AccuWeather said that New York was expected to have a seasonally normal high of 79 degrees Fahrenheit (26 Celsius) on June 19. The city had a high of 95 degrees on June 9.
Global financial service provider Barclays said in a report published late Tuesday, “The market lost recent support as temperatures have moved lower from last week's record highs to more normal levels."
Meanwhile, a government report showing that industrial production in the U.S. rose less-than-expected in May weighed on prices.
The Federal Reserve said that industrial production rose by a seasonally adjusted 0.1% in May, after remaining flat in April. Analysts had expected industrial production to rise by 0.2% in May.
Industrial consumers account for 28% of U.S. gas demand, according to the U.S. Energy Department.
Markets were looking forward to the U.S. Energy Information Administration’s weekly report on U.S. natural gas stockpiles for the week ended June 10 on Thursday.
The report was expected to show that U.S. natural gas inventories increased by 67 billion cubic feet, after adding 80 billion cubic feet in the preceding week. The five-year average change for the week is an increase of 87 billion cubic feet.
Elsewhere, light sweet crude oil futures for delivery in July edged 0.4% lower to trade at USD98.89 a barrel, while heating oil for July delivery declined 1.15% to trade at USD3.089 per gallon during U.S. morning trade.