Investing.com - Natural gas futures edged slightly lower on Monday after updated weather-forecasting models called for showers and thunderstorms to offset a heat wave trekking across the U.S., which should crimp demand for air conditioning.
On the New York Mercantile Exchange, natural gas futures for delivery in September traded at $3.951 per million British thermal units during U.S. trading, down 0.29%. The commodity hit a session low of $3.923, and a high of $4.012.
The September contract settled up 2.22% on Friday to end at $3.962 per million British thermal units.
Natural gas futures were likely to find support at $3.858 per million British thermal units, Thursday's low, and resistance at $4.163, the high from July 9.
While seasonably warm and even above-normal temperatures are present across the heavily populated eastern half of the country, showers and thunderstorms are expected to pop up and cool down temperatures at times, which sent natural gas prices edging lower on Monday.
"Weather systems sweeping through the Midwest and eastern U.S. this week will bring showers, thunderstorms, and cooler-than-normal temperatures as highs only warm into the 70s and lower 80s. Several degrees of cooling is also expected to push deep into the high cooling demand states of the Southeast, where many areas will see 80s instead of 90s," Natgasweather.com reported in its Aug. 11-17 daily weather forecast earlier.
"Texas and portions of the southern Plains will remain seasonably hot with highs in the 90s and 100s and will drive the strongest cooling demand in the country. The western U.S. will see showers and thunderstorms early this week with cooler than normal temperatures, but will warm late in the week as high pressure strengthens."
Investors continued to digest Thursday's supply report.
The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. in the week ended August 1 rose by 82 billion cubic feet, below expectations for an increase of 84 billion cubic feet.
Still, inventories rose by 90 billion cubic feet in the same week a year earlier, while the five-year average change is a build of 49 billion cubic feet, which sent prices falling.
Injections of gas into storage have surpassed the five-year average for 16 consecutive weeks, alleviating concerns over tightening supplies.
Total U.S. natural gas storage stood at 2.389 trillion cubic feet. Stocks were 538 billion cubic feet less than last year at this time and 608 billion cubic feet below the five-year average of 2.948 trillion cubic feet for this time of year.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in September were up 0.44% at $98.08 a barrel, while heating oil for September delivery were up 0.36% at $2.8872 per gallon.
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