Investing.com - Natural gas prices fell on Tuesday after updated weather-forecasting models scaled back on calls for colder temperatures dipping across the U.S., with milder temperatures seen reducing the need for air conditioning or heating.
On the New York Mercantile Exchange, natural gas futures for delivery in November were down 0.87% at $3.874 per million British thermal units during U.S. trading. The commodity hit a session low of $3.866, and a high of $3.959.
The November contract settled up 0.13% on Monday to end at $3.908 per million British thermal units.
Natural gas futures were likely to find support at $3.864 per million British thermal units, Monday's low, and resistance at $3.958, the session high.
A blast of cool air sweeping in from Canada might not dip as far south as markets have been expecting, which sent natural gas prices falling on expectations for power thermal plants to burn less of the commodity due to mild mercury readings.
"Every day the weather models hold off bringing cold northern Canadian air toward the U.S., is another day the markets have to find lower prices. We continue to see it this way as the latest weather data holds on to very comfortable temperatures over much of the U.S. for the next two weeks, apart from a few weather systems affecting the western U.S.," Natgasweather.com reported in its midday update for Tuesday.
"Overall, most US regions will see highs of 70s and 80s well into the first week of October. Of course, there will be some weather systems to track across the country with showers and cooler temperatures at times, but overall, the pattern is very conducive in producing much larger than normal nat gas builds."
Meanwhile, markets kept an eye out for Thursday's weekly supply report.
The U.S. Energy Information Administration said in its report last week that natural gas storage in the U.S. rose by 90 billion cubic feet during the week before.
Injections of gas into storage have surpassed the five-year average for 22 consecutive weeks, alleviating concerns over tightening supplies.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in November were up 0.58% at $91.40 a barrel, while heating oil for October delivery were down 0.30% at $2.6789 per gallon.