Investing.com – Natural gas futures erased gains on Tuesday, retreating from a three-day high as ongoing concerns over record high storage levels in the U.S. outweighed forecasts for colder-than-normal temperatures.
On the New York Mercantile Exchange, natural gas futures for December delivery traded at USD3.381 per million British thermal units during U.S. morning trade, shedding 0.51%.
It earlier fell by as much as 0.65% to trade at a daily low of USD3.376 per million British thermal units.
Since the beginning of November, natural gas futures have fallen nearly 14% to trade at levels last seen in November of 2010, as mild weather in key gas-consuming regions in the U.S. limited early season heating demand.
Concerns over record-high storage levels in the U.S. continued to pressure prices. Markets were looking forward to the U.S. Energy Information Administration’s weekly report on U.S. natural gas stockpiles for the week ended November 18 on Wednesday.
The report is being released a day earlier than usual due to the Thanksgiving Day holiday Thursday.
Early injection estimates range from 9 billion cubic feet to 28 billion cubic feet. The five-year average stockpile change for the week is a decline of 7 billion cubic feet, according to U.S. Energy Department data.
U.S. natural gas stockpiles rose to an all-time high of 3.850 trillion cubic feet last week, exceeding the previous high of 3.831 from November of last year. It also widened the surplus to the five-year average by 9 billion cubic feet to 224 billion, or 6.2%.
U.S. inventories typically increase during the so-called "shoulder season", the period in autumn after air-conditioning demand falls but before heating begins.
But this year's increase, aided by unusually warm temperatures, offers a much larger cushion than in most years as winter approaches.
Prices surged nearly 2.5% on Monday as markets cheered signs that winter’s peak heating season was approaching. Industry weather group MDA Federal said temperatures were likely to drop across much of the U.S. over the next 11-to-15 days.
Colder-than-normal winter temperatures increase the need for gas-fired electricity to heat homes, boosting demand for natural gas.
Elsewhere on the Nymex, light sweet crude oil futures for delivery in January rose 0.78% to trade at USD97.67 a barrel, while heating oil for December delivery added 0.3% to trade at USD3.003 per gallon.
On the New York Mercantile Exchange, natural gas futures for December delivery traded at USD3.381 per million British thermal units during U.S. morning trade, shedding 0.51%.
It earlier fell by as much as 0.65% to trade at a daily low of USD3.376 per million British thermal units.
Since the beginning of November, natural gas futures have fallen nearly 14% to trade at levels last seen in November of 2010, as mild weather in key gas-consuming regions in the U.S. limited early season heating demand.
Concerns over record-high storage levels in the U.S. continued to pressure prices. Markets were looking forward to the U.S. Energy Information Administration’s weekly report on U.S. natural gas stockpiles for the week ended November 18 on Wednesday.
The report is being released a day earlier than usual due to the Thanksgiving Day holiday Thursday.
Early injection estimates range from 9 billion cubic feet to 28 billion cubic feet. The five-year average stockpile change for the week is a decline of 7 billion cubic feet, according to U.S. Energy Department data.
U.S. natural gas stockpiles rose to an all-time high of 3.850 trillion cubic feet last week, exceeding the previous high of 3.831 from November of last year. It also widened the surplus to the five-year average by 9 billion cubic feet to 224 billion, or 6.2%.
U.S. inventories typically increase during the so-called "shoulder season", the period in autumn after air-conditioning demand falls but before heating begins.
But this year's increase, aided by unusually warm temperatures, offers a much larger cushion than in most years as winter approaches.
Prices surged nearly 2.5% on Monday as markets cheered signs that winter’s peak heating season was approaching. Industry weather group MDA Federal said temperatures were likely to drop across much of the U.S. over the next 11-to-15 days.
Colder-than-normal winter temperatures increase the need for gas-fired electricity to heat homes, boosting demand for natural gas.
Elsewhere on the Nymex, light sweet crude oil futures for delivery in January rose 0.78% to trade at USD97.67 a barrel, while heating oil for December delivery added 0.3% to trade at USD3.003 per gallon.