Investing.com - Natural gas futures tumbled to the lowest level since August on Tuesday, as meteorologists continued to predict milder weather across key parts of the U.S. which was likely to limit heating fuel demand.
Natural gas prices have closely tracked weather forecasts in recent weeks, as traders try to gauge the impact of shifting outlooks on early-winter heating demand.
On the New York Mercantile Exchange, natural gas futures for delivery in December traded at USD3.425 per million British thermal units during U.S. morning trade, down 0.6%.
Nymex gas prices tumbled to a session low of USD3.381 per million British thermal units earlier, the weakest level since August 16.
The front-month December contract ended 1.94% lower on Monday to settle at USD3.445 per million British thermal units.
Nymex gas futures were likely to find support at USD3.361 per million British thermal units, the low from August 16 and resistance at USD3.569, the high from November 1.
Weather-forecasting models continued to point to mild temperatures across most parts of Midwest and Eastern U.S. over the next six-to-ten days.
The Commodity Weather Group said temperatures will be normal or higher-than-usual in the eastern half of the U.S. from November 9 through November 18.
Bearish speculators are betting on the warm weather reducing early-winter demand for the heating fuel. The heating season from November through March is the peak demand period for U.S. gas consumption.
Meanwhile, U.S. supply levels also remained in focus. Total U.S. natural gas storage stood at 3.779 trillion cubic feet as of last week, 3.1% below last year's unusually high level but 1.6% above the five-year average for this time of year.
Early injection estimates for this week’s storage data range from 33 billion cubic feet to 45 billion cubic feet, compared to a 27 billion cubic feet increase during the same week a year earlier.
The five-year average for the week is a build of 36 billion cubic feet.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in December fell 0.55% to trade at USD94.10 a barrel, while heating oil for December delivery eased up 0.05% to trade at USD2.875 per gallon.
Natural gas prices have closely tracked weather forecasts in recent weeks, as traders try to gauge the impact of shifting outlooks on early-winter heating demand.
On the New York Mercantile Exchange, natural gas futures for delivery in December traded at USD3.425 per million British thermal units during U.S. morning trade, down 0.6%.
Nymex gas prices tumbled to a session low of USD3.381 per million British thermal units earlier, the weakest level since August 16.
The front-month December contract ended 1.94% lower on Monday to settle at USD3.445 per million British thermal units.
Nymex gas futures were likely to find support at USD3.361 per million British thermal units, the low from August 16 and resistance at USD3.569, the high from November 1.
Weather-forecasting models continued to point to mild temperatures across most parts of Midwest and Eastern U.S. over the next six-to-ten days.
The Commodity Weather Group said temperatures will be normal or higher-than-usual in the eastern half of the U.S. from November 9 through November 18.
Bearish speculators are betting on the warm weather reducing early-winter demand for the heating fuel. The heating season from November through March is the peak demand period for U.S. gas consumption.
Meanwhile, U.S. supply levels also remained in focus. Total U.S. natural gas storage stood at 3.779 trillion cubic feet as of last week, 3.1% below last year's unusually high level but 1.6% above the five-year average for this time of year.
Early injection estimates for this week’s storage data range from 33 billion cubic feet to 45 billion cubic feet, compared to a 27 billion cubic feet increase during the same week a year earlier.
The five-year average for the week is a build of 36 billion cubic feet.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in December fell 0.55% to trade at USD94.10 a barrel, while heating oil for December delivery eased up 0.05% to trade at USD2.875 per gallon.