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Natural gas prices fall on mild weather forecasts

Published 10/29/2013, 02:30 PM
Updated 10/29/2013, 02:31 PM
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Investing.com - Natural gas prices extended Monday's losses into Tuesday as updated weather-forecasting models continued to call for mild temperatures to settle in across the eastern half of the U.S. for the middle of November.

On the New York Mercantile Exchange, natural gas futures for delivery in December traded at USD3.620 per million British thermal units during U.S. trading, down 1.13%.

The commodity hit a session low of USD3.611 and a high of USD3.684.

The December contract settled down 3.96% at USD3.661 per million British thermal units on Monday.

Futures were likely to find support at USD3.557 per million British thermal units, Thursday's low, and resistance at USD3.869, the high from Oct. 16.

Weather-forecasting models on Tuesday continued to predict that currently cool temperatures in the Midwest and Eastern U.S. will give way to largely mild temperatures over the next six to 10 days.

Milder temperatures cut into the need for heating or air conditioning this time of year, lowering demand for natural gas at the nation's thermal power generators.

Meanwhile, U.S. supply levels also remained in focus. Total U.S. natural gas storage stood at 3.741 trillion cubic feet as last week, 2.4% below last year's unusually high level but 2.1% above the five-year average for this time of year.

Early injection estimates for this week’s storage data range from 20 billion cubic feet to 43 billion cubic feet, compared to a 66 billion cubic feet increase during the same week a year earlier.

The five-year average for the week is a build of 57 billion cubic feet.

Elsewhere on the NYMEX, light sweet crude oil futures for delivery in December were down 0.57% and trading at USD98.12 a barrel, while heating oil for December delivery were down 0.13% and trading at USD2.9604 per gallon.







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