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Natural gas prices extend losses on supply concerns, weather forecasts

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Investing.com - Natural gas prices hit five-month lows on Monday as investors avoided the commodity on concerns that a snap of mild summertime temperatures across much of the eastern U.S. will crimp demand for the fuel at the country's thermal power plants.

Milder temperatures in the U.S. often prompt homes and businesses to throttle back on air conditioning.

Supply concerns dampened prices as well.

On the New York Mercantile Exchange, natural gas futures for delivery in September traded at USD3.327 per million British thermal units during U.S. afternoon trading, down 0.61%.

The September contract settled down 1.18%, at USD3.347 per million British thermal units on Friday.

Updated weather forecasting models reported earlier that normal to below-normal temperatures will continue to hover over potions of the Midwest and Northeast U.S. through mid-August, which sent natural gas prices falling on Monday.

Mild mercury readings have many worried that demand will wane until warming trends return.

Natural gas storage in the U.S. rose by 59 billion cubic feet last week, above market expectations for an increase of 56 billion cubic feet.

Inventories rose by 28 billion cubic feet in the same week a year earlier, while the five-year average change for the week is a build of 47 billion cubic feet.

Total U.S. natural gas storage stood at 2.845 trillion cubic feet as of last week, just 1% below the five-year average.

Elsewhere on the NYMEX, light sweet crude oil futures for delivery in September were down 0.06% and trading at USD106.88 a barrel, while heating oil futures for September delivery were down 0.33% at USD3.0614 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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