Investing.com - Natural gas futures carried Monday's losses into Tuesday after updated weather-forecasting models continued to call for below-normal temperatures sweeping in from Canada into the Midwest to trek east.
On the New York Mercantile Exchange, natural gas futures for delivery in August traded at $4.112 per million British thermal units during U.S. trading, down 0.86%. The commodity hit a session high of $4.158 and a low of $4.098.
The August contract settled up 0.02% on Monday to end at $4.147 per million British thermal units.
Natural gas futures were likely to find support at $4.092 per million British thermal units, Monday's low, and resistance at $4.173, Monday's high.
A weather system similar to the Polar Vortex from last winter will bring below-normal temperatures to the U.S. Midwest and head east this week, which sent natural gas prices dipping on Tuesday.
In its July 15-21 weather forecast summary, Natgasweather.com reported that the strong Canadian blast of cool air moving across the central and eastern US with the cold front will bring highs reaching only into 60s and 70s in its wake.
Temperatures will be 8-20⁰F cooler than normal over a good chunk of the eastern half of the U.S., while overnight lows will drop into the upper 40s and 50s across the upper Midwest.
Below-normal temperatures this time of year cut into demand for air conditioning, which curbs demand for natural gas, though prices didn't plummet, as warmer air will prevail elsewhere.
"Over the western and extreme southern U.S., high pressure will hold strong and continue to bring hot temperatures with highs warming into the 90s and 100s along with afternoon monsoon thunderstorms," Natgasweather.com reported.
"High pressure will begin to strengthen this weekend in the wake of the departing low. This will allow temperatures in the 80s and lower 90s to surge into much of the northern U.S. with mid 90s and 100s setting up over the southern U.S."
Meanwhile, concerns over tight supplies continued to fade away after weekly supply data released last week showed that utilities in the U.S. added 93 billion cubic feet of gas into storage in the week ended July 4.
The five-year average change for the week is an increase of 72 billion cubic feet.
Total U.S. natural gas storage stood at 2.022 trillion cubic feet as of last week, 24.4% below their level this time last year and 27.5% below the five-year average.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in August were down 1.29% at $99.61 a barrel, while heating oil for August delivery were down 0.82% at $2.8493 per gallon.