Investing.com - Natural gas futures swung between small gains and losses near a six month on Wednesday, as investors readjusted positions ahead of Thursday’s closely-watched supply report to gauge the strength of cooling demand.
On the New York Mercantile Exchange, natural gas for delivery in August tacked on 0.37%, or 1.5 cents, to last trade at $4.220 per million British thermal units during U.S. morning hours.
Natural gas futures fell to $4.129 on Tuesday, the lowest since January 13, before trimming losses to settle at $4.204, down 0.5%, or 2.1 cents.
Futures were likely to find support at $4.118 per million British thermal units, the low from January 13 and resistance at $4.356, the high from July 7.
Thursday’s government report was expected to show that natural gas storage in the U.S. rose by 92 billion cubic feet in the week ended July 4. The five-year average increase for the period is 72 billion.
Natural gas stockpiles have grown by 100 or more billion cubic feet for eight consecutive weeks, a record streak since 1994.
Total U.S. natural gas storage stood at 1.929 trillion cubic feet as of last week, 25.7% below their level this time last year and 29.1% below the five-year average.
Meanwhile, updated weather-forecasting models called for cooler temperatures across most parts of the heavily-populated Midwest and Northeast regions over the next five days, dampening demand for gas-fired electricity to power air conditioning.
Demand for natural gas tends to fluctuate in the summer based on hot weather and air conditioning use.
Elsewhere on the Nymex, crude oil for delivery in August dipped 0.83%, or 85 cents, to trade at $102.55 a barrel, while heating oil for August delivery inched down 0.39% to trade at $2.862 per gallon.