Shutterstock photo
Markets

Natural gas edges lower ahead of weekly supply report

Shutterstock photo

Shutterstock photo

Investing.com -

Investing.com - Natural gas prices dipped on Wednesday as investors jumped to the sidelines to await the release of Thursday's weekly supply report.

On the New York Mercantile Exchange, natural gas futures for delivery in June traded at $4.347 per million British thermal units during U.S. trading, down 0.26%. The commodity hit session high of $4.403 and a low of $4.340.

The June contract settled down 1.71% on Tuesday to end at $4.358 per million British thermal units.

Natural gas futures were likely to find support at $4.222 per million British thermal units, the low from April 2, and resistance at $4.825, last Wednesday's high.

Last week, the U.S. Energy Information Administration reported that natural gas storage in the U.S. in the week ending May 2 rose by 74 billion cubic feet, above forecasts for an increase of 71 billion cubic feet.

Total U.S. natural gas storage stood at 1.055 trillion cubic feet, an 11-year low.

Early injection estimates for this week's storage data range from 80 billion cubic feet to 100 billion cubic feet. The five-year average change for the week is a build of 82 billion cubic feet.

Producers would need to add 2.6 trillion to 2.9 trillion cubic feet to storage by November 1 to meet typical winter demand, analysts said.

Updated weather forecasting models continued to for seasonably mild weather over much of the Midwest and Northeast for the next two weeks, which was likely to lower heating demand.

Approximately 52% of U.S. households use natural gas for heating, according to the Energy Department.

Mild springtime temperatures weren't forecast to rise high enough to hike demand for air conditioning, which would require power generators to burn more natural gas to meet demand.

Elsewhere on the NYMEX, light sweet crude oil futures for delivery in June were up 0.70% at $102.41 a barrel, while heating oil for June delivery were up 0.71% at $2.9648 per gallon.

Investing.com offers an extensive set of professional tools for the financial markets.

Read more News on Investing.com and download the new Investing.com Stocks & Forex App for Android!

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Other Topics

ForEx