Investing.com - Natural gas futures declined for the first time in three sessions on Wednesday, as investors locked in gains from a recent rally which took prices to a one-week high earlier in the day.
On the New York Mercantile Exchange, natural gas for delivery in June traded at $4.766 per million British thermal units during U.S. morning hours, down 0.7%, or 3.4 cents.
Natural gas futures rose to a session high of $4.825 per million British thermal units earlier in the day, the most since April 30.
The June contract rallied 2.37%, or 11.1 cents, on Tuesday to settle at $4.799 per million British thermal units.
Futures were likely to find support at $4.651 per million British thermal units, the low from May 5 and resistance at $4.851, the high from April 30.
Market players looked ahead to Thursday’s closely-watched weekly supply data, amid expectations for an injection of 73 billion cubic feet in the week ended May 2. The five-year average change for the week is a build of 58 billion cubic feet.
Total U.S. natural gas storage stood at an 11-year low of 981 billion cubic feet. Stocks were 50% below the five-year average of 1.965 trillion cubic feet for this time of year and 45% lower than last year at this time.
Producers would need to add 2.6 trillion to 2.9 trillion cubic feet to storage by November 1 to meet typical winter demand, analysts said.
Meanwhile, updated weather forecasting models called for warmer-than-average weather over much of the Midwest and Northeast, as well as the South, lowering heating demand.
Spring and fall see the weakest demand for natural gas in the U.S, as the absence of extreme temperatures curbs demand for heating and air conditioning.
Approximately 52% of U.S. households use natural gas for heating, according to the Energy Department.
Elsewhere on the Nymex, U.S. crude for delivery in June rose 0.78%, or 78 cents, to trade at $100.28 a barrel, while heating oil for June delivery advanced 0.35% to trade at $2.897 per gallon.