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Natural gas extends losses as U.S. storm system to bring cooler temps

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Investing.com -

Investing.com - Natural gas futures moved lower on Tuesday after updated weather-forecasting models predicted that a storm system trekking across the central and eastern U.S. will bring damp and cooler temperatures that should cut into demand for air conditioning.

On the New York Mercantile Exchange, natural gas futures for delivery in July traded at $4.577 per million British thermal units during U.S. trading, down 1.47%. The commodity hit a session high of $4.663 and a low of $4.564.

The July contract settled down 1.38% on Monday to end at $4.645 per million British thermal units.

Natural gas futures were likely to find support at $4.489 per million British thermal units, the low from May 30, and resistance at $4.743, Monday's high.

A storm system tracking across the south-central U.S. dumping showers will gradually move east over the coming days and bring with it mild, wet conditions, which should crimp demand for air conditioning.

Mild temperatures should hover over much of the U.S. over the next six days, Natgasweather.com reported, though high pressure should settle in afterwards and bring warmer temperatures over the southern U.S.

Elsewhere, markets continued to digest Thursday's U.S. inventory report.

Meanwhile, market players continued to assess the outlook for U.S. supply levels. Utilities added 119 billion cubic feet of gas into storage last week, the largest weekly injection since 2009.

Total U.S. natural gas storage stood at 1.499 trillion cubic feet as of last week, nearly 33% below their level this time last year and 37% below the five-year average.

Producers would need to add approximately 2.5 trillion cubic feet to storage by November 1 to meet typical winter demand, analysts said.

Elsewhere on the NYMEX, light sweet crude oil futures for delivery in July were down 0.05% at $104.36 a barrel, while heating oil for July delivery were down 0.53% at $2.8759 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.


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

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