Investing.com - Natural gas futures edged lower during U.S. morning trade on Wednesday, as market participants looked ahead to Thursday’s closely-watched U.S. supply data to gauge the strength of demand from U.S. households.
On the New York Mercantile Exchange, natural gas futures for delivery in October traded at USD3.575 per million British thermal units during U.S. morning trade, down 0.3%.
Prices traded in a range between USD3.554, the daily low and a session high of USD3.602 per million British thermal units. The October contract settled 0.5% lower at USD3.584 per million British thermal units on Tuesday.
Market analysts expect this week’s storage data to show an increase of 64 billion cubic feet. The five-year average for the week is a build of 62 billion cubic feet.
Total U.S. natural gas storage stood at 3.188 trillion cubic feet as of last week, 1.4% above the five-year average and 6.2% below last year's unusually high level.
Meanwhile, investors continued to focus on near-term weather forecasts to gauge the strength of demand for the fuel.
Updated weather forecasting models pointed to warmer-than-normal temperatures across most parts of the U.S. Midwest through mid-September, boosting near-term demand expectations.
Market participants also monitored tropical storm activity in the Gulf of Mexico, amid concerns over a disruption to supplies from the region.
The U.S. National Hurricane Center said Tropical Storm Gabrielle was moving north toward Bermuda, while Tropical Storm Humberto was moving northwest.
Energy traders track tropical storm activity in the event it disrupts production in the Gulf of Mexico, which is home to 10% of U.S. natural gas production.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in October inched up 0.25% to trade at USD107.65 a barrel, while heating oil for October delivery added 0.5% to trade at USD3.081 per gallon.