Investing.com - Natural gas prices dropped in U.S. trading on Tuesday after the long Memorial Day holiday weekend in the U.S., as investors sold during expiration of the front-month June contract.
In the New York Mercantile Exchange, natural gas futures for delivery in July traded at USD4.229 per million British thermal units, down 1.30%.
The commodity hit a session low of USD4.176 and a high of USD4.347.
Expiring futures contracts often lead to volatile sessions as market participants look to close out positions or reposition their portfolios.
Elsewhere, markets shrugged off forecasts for hotter weather in the U.S.
Weather forecasting models pointed to above-normal temperatures settling in over parts of the eastern U.S. though June.
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 units.
Weather service provider AccuWeather predicted earlier that the high in New York City on May 31 may hit 86 degrees Fahrenheit, or 30 Celsius, 11 degrees above normal.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in July were up 1.26% and trading at USD95.34 a barrel, while heating oil futures for July delivery were up 1.97% at USD2.9106 per gallon.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
