Investing.com - U.S. natural gas futures fell for the second straight day on Wednesday, as market participants looked ahead to fresh weekly information on U.S. gas inventories to gauge the strength of demand for the fuel.
The U.S. Energy Information Administration's storage report slated for release on Thursday is expected to show a withdrawal of approximately 145 billion cubic feet for the week ending February 5.
That compares with draws of 152 billion cubic feet in the prior week, 160 billion cubic feet in the same week last year and a five-year average of around 162 billion.
Total U.S. natural gas storage stood at 2.934 trillion cubic feet, 16.7% higher than levels at this time a year ago and 15.1% above the five-year average for this time of year.
Natural gas for delivery in March on the New York Mercantile Exchange sank 4.1 cents, or 1.95%, to trade at $2.057 per million British thermal units by 14:50 GMT, or 9:50AM ET.
A day earlier, futures fell 4.2 cents, or 1.96%, as forecasts calling for less cold weather over the next two weeks weighed. Forecasts originally called for cold winter weather during the period.
Bearish speculators are betting on the mild weather reducing winter demand for the heating fuel. The heating season from November through March is the peak demand period for U.S. gas consumption.
Elsewhere on the Nymex, crude oil for delivery in March lost 29 cents, or 1.04%, to trade at $27.65 a barrel, while heating oil for March delivery shed 0.2% to trade at $0.9730 per gallon.