Investing.com – Natural gas futures were down for the first time in four days on Tuesday, dropping to a two-day low amid indications of reduced demand after forecasts showed mild weather across most of the U.S. next week.
On the New York Mercantile Exchange, natural gas futures for June delivery traded at USD4.170 per million British thermal units during U.S. morning trade, plunging 3.35%.
It earlier dropped by as much as 3.5% to USD4.162 per million British thermal units, the lowest price since May 13.
The Commodity Weather Group said that normal to below-normal temperatures were expected in the U.S. east and southeast through May 21, followed by a shift to above-normal temperatures in the eastern half of the country in the 6-10 day forecast.
Weather service provider AccuWeather said that Boston was expected to have a high of 63 degrees Fahrenheit (17 Celsius) on May 21, five degrees below normal. The high in Chicago may be 73 degrees, matching the normal temperature.
Gas use typically hits a seasonal low with spring's mild temperatures, before warmer weather increases demand for gas-fired electricity generation to power air conditioning.
Meanwhile, a government report showing that industrial production in the U.S. was unexpectedly flat in April weighed on prices. Analysts had expected U.S. industrial production to rise by 0.5% last month after rising by a revised 0.7% in March.
Industrial consumers account for 28% of U.S. gas demand, according to the U.S. Energy Department.
Elsewhere, light sweet crude oil futures for delivery in June slumped 0.85% to trade at USD96.19 a barrel, while heating oil for June delivery shed 0.52% to trade at USD2.847 per gallon during U.S. morning trade.
On the New York Mercantile Exchange, natural gas futures for June delivery traded at USD4.170 per million British thermal units during U.S. morning trade, plunging 3.35%.
It earlier dropped by as much as 3.5% to USD4.162 per million British thermal units, the lowest price since May 13.
The Commodity Weather Group said that normal to below-normal temperatures were expected in the U.S. east and southeast through May 21, followed by a shift to above-normal temperatures in the eastern half of the country in the 6-10 day forecast.
Weather service provider AccuWeather said that Boston was expected to have a high of 63 degrees Fahrenheit (17 Celsius) on May 21, five degrees below normal. The high in Chicago may be 73 degrees, matching the normal temperature.
Gas use typically hits a seasonal low with spring's mild temperatures, before warmer weather increases demand for gas-fired electricity generation to power air conditioning.
Meanwhile, a government report showing that industrial production in the U.S. was unexpectedly flat in April weighed on prices. Analysts had expected U.S. industrial production to rise by 0.5% last month after rising by a revised 0.7% in March.
Industrial consumers account for 28% of U.S. gas demand, according to the U.S. Energy Department.
Elsewhere, light sweet crude oil futures for delivery in June slumped 0.85% to trade at USD96.19 a barrel, while heating oil for June delivery shed 0.52% to trade at USD2.847 per gallon during U.S. morning trade.