Natural gas drops as weather forecasts point to cooler U.S. temperatures

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Investing.com - Natural gas prices fell on Tuesday after weather forecasting models predicted below-normal temperatures to arrive in the eastern half of the U.S. in the coming days.

In the New York Mercantile Exchange, natural gas futures for delivery in August traded at USD3.722 per million British thermal units, down 1.02%.

The commodity hit a session low of USD3.684 and a high of USD3.778.

Weather forecasting models called for below-normal temperatures to settle in for portions of the heavily populated northeastern U.S. over the next two weeks.

Industry weather group MDA Weather Services said it expected near normal or below-normal temperatures to spread across the eastern half of the nation during the next six-to-15-days.

Mild summer temperatures cut into the need for gas-fired electricity to cool homes and dampen demand for natural gas.

Prices continued to hover lower after the U.S. Energy Information Administration said in its weekly report late last week that natural gas storage in the U.S. in the week ended June 14 rose by 91 billion cubic feet, above market expectations for an increase of 90 billion.

Total U.S. natural gas storage stood 2.438 trillion cubic feet as of last week, 1.9% below the five-year average for this time of year.

Early injection estimates for this week's storage data range from 75 billion cubic feet to 95 billion cubic feet, compared to a 58 billion cubic feet increase during the same week a year earlier.

The five-year average for the week is a build of 79 billion cubic fee

Elsewhere on the NYMEX, light sweet crude oil futures for delivery in August were up 0.21% and trading at USD95.38 a barrel, while heating oil futures for August delivery were up 0.46% at USD2.8661 per gallon.







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