Investing.com - Natural gas futures dropped on Wednesday after investors locked in gains from a recent heat wave and sold the commodity for profits, jumping to the sidelines ahead of the release of Thursday's weekly supply report.
On the New York Mercantile Exchange, natural gas futures for delivery in September traded at $3.851 per million British thermal units during U.S. trading, down 3.10%. The commodity hit a session low of $3.844, and a high of $4.986.
The September contract settled up 0.23% on Tuesday to end at $3.974 per million British thermal units.
Natural gas futures were likely to find support at $3.725 per million British thermal units, the low from July 28, and resistance at $4.020, Tuesday's high.
A heat wave trekking across the U.S. has sent natural gas prices rising in recent sessions, as investors bet higher temperatures will prompt households to crank up their air conditioning.
By Wednesday, investors sold for profits ahead of the Thursday release of the U.S. Energy Information Administration's weekly supply report.
Markets are expecting an increase of 81 billion cubic feet in the week ending Aug. 8.
Inventories rose by 70 billion cubic feet in the same week a year earlier, while the five-year average change is a build of 45 billion cubic feet.
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 as of last week, narrowing the deficit to the five-year average to 20% from 21.7% a week earlier and down from a record 54.7% at the end of March.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in September were up 0.02% at $97.39 a barrel, while heating oil for September delivery were up 1.35% at $2.8835 per gallon.
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