Investing.com - Natural gas futures declined for the fourth consecutive day on Tuesday to hit the lowest level since mid-March, as mild weather forecasts continued to weigh on demand expectations for the fuel.
On the New York Mercantile Exchange, natural gas futures for delivery in July traded at USD3.767 per million British thermal units during U.S. morning trade, down 0.9% on the day.
It earlier fell by as much as 1.2% to hit a session low of USD3.755 per million British thermal units, the weakest level since March 14.
Weather forecasting models continued to point to above-normal temperatures across most of the U.S. over the next six-to-ten days, before giving way to below-normal temperatures later in June.
Demand for natural gas tends to rise in the summer months as warmer temperatures increase the need for gas-fired electricity to power air conditioning.
Meanwhile, last week's bearish U.S. supply report also remained in focus. The U.S. Energy Information Administration said that natural gas storage in the U.S. rose by 111 billion cubic feet last week, above market expectations for an increase of 95 billion.
Inventories rose by 72 billion cubic feet in the same week a year earlier, while the five-year average change for the week is a rise of 92 billion cubic feet.
Total U.S. natural gas storage stood at 2.252 trillion cubic feet as of last week, 3% below the five-year average for this time of year.
Early injection estimates for this week's storage data range from 90 billion cubic feet to 112 billion cubic feet, compared to a 66 billion cubic feet increase during the same week a year earlier.
The five-year average for the week is a build of 84 billion cubic feet.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in July fell 1.4% to trade at USD94.45 a barrel, while heating oil for July delivery lost 1.4% to trade at USD2.843 per gallon.
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