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Natural gas prices extend losses on mild U.S. weather forecasts

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Investing.com -

Investing.com - Natural gas futures carried Friday's losses into Monday after updated weather-forecasting models continued to call for mild temperatures for parts of the eastern half of the U.S. in the coming days

On the New York Mercantile Exchange, natural gas futures for delivery in September traded at $3.752 per million British thermal units during U.S. trading, down 0.94%. The commodity hit a session high of $3.856 and a low of $3.741.

The September contract settled down 1.64% on Friday to end at $3.787 per million British thermal units.

Natural gas futures were likely to find support at $3.545 per million British thermal units, the low from Nov. 19, and resistance at $3.892, Thursday's high.

Forecasts for below-normal temperatures sent natural gas prices falling on Monday as investors avoided the commodity on expectations for households to throttle back on their air conditioning.

The bearish weather report wiped out gains stemming from Thursday's bullish weekly inventory report.

The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. in the week ended July 18 rose by 90 billion cubic feet, below expectations for an increase of 96 billion cubic feet.

The five-year average change for the week is an increase of 46 billion cubic feet.

Total U.S. natural gas storage stood at 2.219 trillion cubic feet. Stocks were 561 billion cubic feet less than last year at this time and 683 billion cubic feet below the five-year average of 2.902 trillion cubic feet for this time of year.

Elsewhere on the NYMEX, light sweet crude oil futures for delivery in September were down 0.47% at $101.61 a barrel, while heating oil for August delivery were down 0.93% at $2.8964 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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