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Natural gas prices edge higher amid bargain hunting

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Investing.com - Natural gas prices moved higher on Wednesday after investors priced in forecasts calling for below-normal temperatures across much of the eastern U.S. and later snapped up nicely priced positions.

On the New York Mercantile Exchange, natural gas futures for delivery in September traded at USD3.435 per million British thermal units during U.S. morning trade, up 0.07%.

The September contract settled down 1.15%, at USD3.432 per million British thermal units on Monday.

Prices have dropped in recent sessions on weather forecasts calling for cooler-than-normal temperatures for much of the central and eastern reaches of the country to settle in for the next week to ten days.

Below-normal summer temperatures cut into demand for air conditioning, prompting gas-fired power generators to rely less on the fuel source, though by Wednesday, investors fell gas prices had fallen enough.

Meanwhile, U.S. supply levels remained in focus now that weather forecasts have been priced into trading. Total U.S. natural gas storage stood at 2.786 trillion cubic feet as of last week, just 2% below the five-year average and about 13% below last year's level.

Early injection estimates for this week's storage data range from 47 billion cubic feet to 63 billion cubic feet, compared to a 28 billion cubic feet increase during the same week a year earlier.

The five-year average for the week is a build of 47 billion cubic feet.

Elsewhere on the NYMEX, light sweet crude oil futures for delivery in September were up 1.43% and trading at USD104.55 a barrel, while heating oil futures for September delivery were up 1.08% at USD3.0415 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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