Investing.com - Natural gas prices fell on Wednesday after forecasts called for mild autumn weather across the eastern U.S., which should curb demand for both heating and air conditioning.
Many investors remained on the sidelines ahead of Thursday's weekly supply report.
On the New York Mercantile Exchange, natural gas futures for delivery in November were down 1.21% at $3.666 per million British thermal units during U.S. trading. The commodity hit a session low of $3.652, and a high of $3.718.
The November contract settled up 1.12% on Tuesday to end at $3.711 per million British thermal units.
Natural gas futures were likely to find support at $3.631 per million British thermal units, the session low, and resistance at $3.955, the high from Oct. 14.
Updated weather-forecasting models called for blasts of cold air to sweep in from Canada during the coming days, though they shouldn't dip too far in the U.S., where temperatures will remain mild.
"It's nice to see they are still trying to bring colder weather systems into the Midwest and Northeast with the potential for hard freezes and a few snowflakes, but without being consistent from one run to the next, the markets are going to have a tough time believing exactly what's going to take place," Natgasweather.com reported in its Wednesday midday update.
"The models are having the biggest issues with how much colder Canadian air will push into the U.S. around November 1-5th and also exactly where."
Investors also remained on the sidelines ahead of Thursday's weekly supply report, which is expected to show an increase of 97 billion cubic feet for the week ending Oct. 17.
The five-year average change for the week is an increase of 70 billion cubic feet.
Injections of gas into storage have surpassed the five-year average for 26 consecutive weeks, alleviating concerns over tightening supplies.
Total U.S. natural gas storage stood at 3.299 trillion cubic feet as of last week, narrowing the deficit to the five-year average to 9.9% from a record 54.7% at the end of March.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in December were down 2.38% at $80.53 a barrel, while heating oil for November delivery were down 1.71% at $2.4703 per gallon.