Investing.com – Natural gas futures were down on Monday, slumping to a two-day low in holiday-thinned trade as a moderating weather outlook in the U.S. weighed on demand expectations for the fuel.
On the New York Mercantile Exchange, natural gas futures for July delivery traded at USD4.279 per million British thermal units during European late afternoon trade, dropping 0.85%.
It earlier fell as much as 1.3% to trade at USD4.256 per million British thermal units, the lowest price since June 30.
Trade was expected to remain thin as the NYMEX floor trading was to remain closed for the U.S. Independence Day holiday. Electronic trades were to be booked with Tuesday’s transactions for settlement purposes.
The Commodity Weather Group said on Friday that it expected mostly normal temperatures across the continental U.S. from July 7 to July 12.
The weather group added that the hottest weather for the East Coast in the next two weeks was mainly confined to the Fourth of July weekend.
"We are seeing some more normal temperatures starting to show up, acting to cap the market's upward potential," the weather group said in a report.
Demand for natural gas tends to fluctuate in the summer based on weather forecasts and air conditioning use.
Meanwhile, concerns over rising production levels in the U.S. also weighed on prices.
Industry research group Baker Hughes said in a report on Friday that the number of active rigs drilling for natural gas in the U.S. last week rose to 874 from 873, the second consecutive weekly gain.
According to the group, a drop to the 800-rig-level would be necessary to begin to balance the market.
Elsewhere, light sweet crude oil futures for delivery in August gained 0.5% to trade at USD95.25 a barrel, while heating oil for August delivery added 0.4% to trade at USD2.932 per gallon during European late afternoon trade.
On the New York Mercantile Exchange, natural gas futures for July delivery traded at USD4.279 per million British thermal units during European late afternoon trade, dropping 0.85%.
It earlier fell as much as 1.3% to trade at USD4.256 per million British thermal units, the lowest price since June 30.
Trade was expected to remain thin as the NYMEX floor trading was to remain closed for the U.S. Independence Day holiday. Electronic trades were to be booked with Tuesday’s transactions for settlement purposes.
The Commodity Weather Group said on Friday that it expected mostly normal temperatures across the continental U.S. from July 7 to July 12.
The weather group added that the hottest weather for the East Coast in the next two weeks was mainly confined to the Fourth of July weekend.
"We are seeing some more normal temperatures starting to show up, acting to cap the market's upward potential," the weather group said in a report.
Demand for natural gas tends to fluctuate in the summer based on weather forecasts and air conditioning use.
Meanwhile, concerns over rising production levels in the U.S. also weighed on prices.
Industry research group Baker Hughes said in a report on Friday that the number of active rigs drilling for natural gas in the U.S. last week rose to 874 from 873, the second consecutive weekly gain.
According to the group, a drop to the 800-rig-level would be necessary to begin to balance the market.
Elsewhere, light sweet crude oil futures for delivery in August gained 0.5% to trade at USD95.25 a barrel, while heating oil for August delivery added 0.4% to trade at USD2.932 per gallon during European late afternoon trade.