Investing.com - Natural gas prices fell on Friday after updated weather-forecasting models suggested a tropical low could intensify into a cyclone but would likely remain in the Atlantic Ocean and veer away from the Gulf of Mexico.
Tropical weather systems in the Gulf of Mexico often send prices rising, as rigs are evacuated and supply slows.
On the New York Mercantile Exchange, natural gas futures for delivery in September traded at $3.866 per million British thermal units during U.S. trading, down 0.60%. The commodity hit a session low of $3.851, and a high of $3.894.
The September contract settled up 1.73% on Thursday to end at $3.889 per million British thermal units.
Natural gas futures were likely to find support at $3.786 per million British thermal units, Thursday's low, and resistance at $3.955, Thursday's high.
A low-pressure system in the western Atlantic Ocean appeared poised to develop into a tropical cyclone, with the National Hurricane Center giving the storm a 60% chance of becoming a tropical depression in 48 hours and a 80% chance in 5 days.
Still, the latest model runs at the time of writing appeared to keep the system in the Atlantic Ocean and out of the gas-rich Gulf of Mexico, which allowed natural prices to soften on Friday.
Investors also digested Thursday's bearish supply data.
The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. in the week ended Aug. 15 rose by 88 billion cubic feet, surpassing expectations for an increase of 83 billion cubic feet, which sent prices falling earlier Thursday.
Inventories rose by 58 billion cubic feet in the same week a year earlier, while the five-year average change is a build of 48 billion cubic feet.
Injections of gas into storage have surpassed the five-year average for 18 consecutive weeks, alleviating concerns over tightening supplies.
Total U.S. natural gas storage stood at 2.467 trillion cubic feet. Stocks were 500 billion cubic feet less than last year at this time and 535 billion cubic feet below the five-year average of 3.090 trillion cubic feet for this time of year.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in October were down 1.03% at $92.99 a barrel, while heating oil for September delivery were down 0.34% at $2.8280 per gallon.