Investing.com – Natural gas futures declined for the first time in four days on Wednesday, as investors cashed out of the market to lock in gains from a rally that took prices to a four-week peak in the previous session.
On the New York Mercantile Exchange, natural gas futures for July delivery traded at USD4.612 per million British thermal units during U.S. morning trade, slumping 0.89%.
On Tuesday, natural gas prices jumped nearly 3% to USD4.703, the highest price since May 3, amid indications of increased demand after forecasts showed warmer-than-normal temperatures across much of the U.S. through the first week of June.
However, the rally prompted some investors to sell their position on profit taking and lock in gains on speculation that the market’s recent rally had accounted for the boost to cooling needs.
The Commodity Weather Group said that many U.S. cities already saw the highest temperatures of the year over the long Memorial Day weekend.
According to the weather group, temperatures were expected to ease in New England, but "much-above-normal temperatures" will "encompass most of the Midwest" and "hot conditions will continue to loom over the South."
Markets were looking forward to the U.S. Energy Information Administration’s weekly report on U.S. natural gas stockpiles for the week ended May 27 on Thursday.
The report was expected to show that U.S. natural gas inventories increased by 92 billion cubic feet, after adding 105 billion cubic feet in the preceding week.
Elsewhere, light sweet crude oil futures for delivery in July slumped 0.7% to trade at USD101.91 a barrel, while heating oil for July delivery dipped 0.18% to trade at USD3.039 per gallon during U.S. morning trade.
On the New York Mercantile Exchange, natural gas futures for July delivery traded at USD4.612 per million British thermal units during U.S. morning trade, slumping 0.89%.
On Tuesday, natural gas prices jumped nearly 3% to USD4.703, the highest price since May 3, amid indications of increased demand after forecasts showed warmer-than-normal temperatures across much of the U.S. through the first week of June.
However, the rally prompted some investors to sell their position on profit taking and lock in gains on speculation that the market’s recent rally had accounted for the boost to cooling needs.
The Commodity Weather Group said that many U.S. cities already saw the highest temperatures of the year over the long Memorial Day weekend.
According to the weather group, temperatures were expected to ease in New England, but "much-above-normal temperatures" will "encompass most of the Midwest" and "hot conditions will continue to loom over the South."
Markets were looking forward to the U.S. Energy Information Administration’s weekly report on U.S. natural gas stockpiles for the week ended May 27 on Thursday.
The report was expected to show that U.S. natural gas inventories increased by 92 billion cubic feet, after adding 105 billion cubic feet in the preceding week.
Elsewhere, light sweet crude oil futures for delivery in July slumped 0.7% to trade at USD101.91 a barrel, while heating oil for July delivery dipped 0.18% to trade at USD3.039 per gallon during U.S. morning trade.