Investing.com – Natural gas futures were down on Wednesday, giving back some of the previous session’s strong gains as forecasts for cooler weather in the U.S. and easing fears over a disruption to supplies in the Gulf of Mexico dragged down prices.
On the New York Mercantile Exchange, natural gas futures for October delivery traded at USD3.921 per million British thermal units during U.S. morning trade, slumping 1.17%.
It earlier fell as much as 1.38% to trade at a daily low of USD3.914 per million British thermal units.
Industry weather group MDA Federal said earlier that while it expected above-average weather in the Southern U.S. states, the firm’s six-to-ten day weather forecast showed seasonably-normal weather was expected across most parts of the U.S. Midwest and Northeast during the period.
Demand for natural gas tends to fluctuate in the summer based on hot weather and air conditioning use.
Predictions of below-average or above-average temperatures may prompt traders to buy or sell natural gas futures.
Meanwhile, the U.S. National Hurricane Center upgraded Hurricane Irene to a category 3 storm earlier as it headed towards the U.S. east coast and away from the Gulf of Mexico.
Energy traders track tropical weather in the event it disrupts production in the Gulf of Mexico, which accounts for about 10% of U.S. natural gas output.
Markets were looking forward to the U.S. Energy Information Administration’s weekly report on U.S. natural gas stockpiles for the week ended August 19 on Thursday.
The report was expected to show that U.S. natural gas inventories increased by 75 billion cubic feet, after adding 50 billion cubic feet in the preceding week.
Elsewhere on the Nymex, light sweet crude oil futures for delivery in October climbed 0.57% to trade at USD85.92 a barrel, while heating oil for September delivery shed 0.23% to trade at USD2.952 per gallon.
On the New York Mercantile Exchange, natural gas futures for October delivery traded at USD3.921 per million British thermal units during U.S. morning trade, slumping 1.17%.
It earlier fell as much as 1.38% to trade at a daily low of USD3.914 per million British thermal units.
Industry weather group MDA Federal said earlier that while it expected above-average weather in the Southern U.S. states, the firm’s six-to-ten day weather forecast showed seasonably-normal weather was expected across most parts of the U.S. Midwest and Northeast during the period.
Demand for natural gas tends to fluctuate in the summer based on hot weather and air conditioning use.
Predictions of below-average or above-average temperatures may prompt traders to buy or sell natural gas futures.
Meanwhile, the U.S. National Hurricane Center upgraded Hurricane Irene to a category 3 storm earlier as it headed towards the U.S. east coast and away from the Gulf of Mexico.
Energy traders track tropical weather in the event it disrupts production in the Gulf of Mexico, which accounts for about 10% of U.S. natural gas output.
Markets were looking forward to the U.S. Energy Information Administration’s weekly report on U.S. natural gas stockpiles for the week ended August 19 on Thursday.
The report was expected to show that U.S. natural gas inventories increased by 75 billion cubic feet, after adding 50 billion cubic feet in the preceding week.
Elsewhere on the Nymex, light sweet crude oil futures for delivery in October climbed 0.57% to trade at USD85.92 a barrel, while heating oil for September delivery shed 0.23% to trade at USD2.952 per gallon.