Investing.com - Natural gas prices extended Monday's gains into
Tuesday after weather forecasting models continued to point to
above-normal temperatures settling in for much of the country over
the next week.
In the New York Mercantile Exchange, natural gas futures for
delivery in July traded at USD3.884 per million British thermal
units, up 0.22%.
The commodity hit a session low of USD3.866 and a high of USD3.952.
The National Weather Service's six-to-ten-day outlook issued on
Sunday called for above-normal readings for a good portion of the
Elsewhere, the Commodity Weather Group LLC predicted hot weather to
settle in for the northern U.S. from June 23 to June 27.
Hotter temperatures send prices rising on sentiments that demand
for natural gas will increase at the country's thermal power plants
as businesses and households crank up their air conditioning.
Natural gas accounts for about a quarter of U.S. electricity
Meanwhile, traders kept an eye out towards U.S. supply levels due
for release on Thursday.
Total U.S. natural gas storage stood 2.347 trillion cubic feet as
of last week, 2% below the five-year average for this time of year.
Early injection estimates for this week's storage data range from
83 billion cubic feet to 95 billion cubic feet, compared to a 63
billion cubic feet increase during the same week a year earlier.
The five-year average for the week is a build of 80 billion cubic
Elsewhere, a tropical depression that formed in the Caribbean on
Monday made landfall on the coast of Belize.
Investors paid close attention to the system to see if it emerges
in the gas-rich Gulf of Mexico in the coming days and strengthens.
Tropical weather systems often disrupt production in the Gulf of
Mexico and send prices rising.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery
in August were up 0.44% and trading at USD98.47 a barrel, while
heating oil futures for July delivery were up 0.39% at USD2.9619
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