Investing.com - Natural gas futures fell on Monday as investors sold for profits as weather forecasts began to offer contrasting calls for cooler temperatures to return for much of the U.S.
On the New York Mercantile Exchange, natural gas futures for delivery in February traded at USD3.268 per million British thermal units, down 0.56%.
Weekend weather forecasts called for colder-than-normal weather across key parts of the U.S. later in January and into early February, which sent natural gas prices rising earlier in the session.
A National Weather Service six-to-10-day forecast issued on Sunday called for below or much-below-normal readings, while weather service provider WSI echoed those calls by predicting temperatures to fall below normal in the western half of the U.S. from January 13 through January 17.
Later on Monday, however, MDA Weather Services predicted warmer temperatures for the Midwest and eastern reaches of the country over the next two weeks, which sent prices falling.
Last week, the Energy Information Administration reported earlier that U.S. natural gas storage fell by a seasonally adjusted annual rate of 135 billion cubic feet last week, beating out market calls for a decline of 127 billion cubic feet, which sent prices gaining and ripe for profit taking as well.
Natural gas futures are very sensitive to weather reports in the U.S. winter.
The U.S. heating season running from November through March sees peak demand for gas.
About half of U.S. households use gas for heating purposes, according to Energy Department data.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in February were up 0.10% and trading at USD93.19 a barrel, while heating oil for February delivery were up 0.51% and trading at USD3.0332 per gallon.
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