Investing.com – Natural gas futures were down on Tuesday, retreating from a three-day high after forecasts showed moderating temperatures which were likely to weigh on demand expectations for the fuel.
On the New York Mercantile Exchange, natural gas futures for August delivery traded at USD4.301 per million British thermal units during U.S. morning trade, slumping 0.35%.
It earlier fell as much as 0.75% to trade at a daily low of USD4.280 per million British thermal units.
The Commodity Weather Group said earlier that it expected mostly normal temperatures across the continental U.S. from July 7 to July 12.
The weather group added that the hottest weather for the East Coast in the next two weeks was mainly confined to the Fourth of July weekend.
"We are seeing some more normal temperatures starting to show up, acting to cap the market's upward potential," the weather group said in a report.
The weather group added that there was no threat of Gulf of Mexico hurricanes on the horizon.
Energy traders track tropical weather in the event it disrupts production in the Gulf of Mexico.
Meanwhile, global financial service provider Deutsche Bank said in a report earlier that U.S. natural gas markets were suffering in the short-term primarily due to the current demand and supply situation, which should improve by 2012.
“The rig count is shifting toward an emphasis on oil, and the anti-nuclear move around the world should benefit gas,” the lender said.
According to industry research group Baker Hughes, the number of active rigs drilling for natural gas in the U.S. last week stood at 874, while the number of rigs drilling for oil rose totaled 1,006.
Many analysts believe that a drop to the 800-rig-level would be necessary to begin to balance the market.
Gas futures initially traded higher on Tuesday, hitting a three-day high of USD4.41 per million British thermal units as investors readjusted positions following the long holiday weekend and after the July contract expiration last Friday.
Elsewhere, light sweet crude oil futures for delivery in August jumped 1.65% to trade at USD96.58 a barrel, while heating oil for August delivery advanced 1% to trade at USD2.952 per gallon.
On the New York Mercantile Exchange, natural gas futures for August delivery traded at USD4.301 per million British thermal units during U.S. morning trade, slumping 0.35%.
It earlier fell as much as 0.75% to trade at a daily low of USD4.280 per million British thermal units.
The Commodity Weather Group said earlier that it expected mostly normal temperatures across the continental U.S. from July 7 to July 12.
The weather group added that the hottest weather for the East Coast in the next two weeks was mainly confined to the Fourth of July weekend.
"We are seeing some more normal temperatures starting to show up, acting to cap the market's upward potential," the weather group said in a report.
The weather group added that there was no threat of Gulf of Mexico hurricanes on the horizon.
Energy traders track tropical weather in the event it disrupts production in the Gulf of Mexico.
Meanwhile, global financial service provider Deutsche Bank said in a report earlier that U.S. natural gas markets were suffering in the short-term primarily due to the current demand and supply situation, which should improve by 2012.
“The rig count is shifting toward an emphasis on oil, and the anti-nuclear move around the world should benefit gas,” the lender said.
According to industry research group Baker Hughes, the number of active rigs drilling for natural gas in the U.S. last week stood at 874, while the number of rigs drilling for oil rose totaled 1,006.
Many analysts believe that a drop to the 800-rig-level would be necessary to begin to balance the market.
Gas futures initially traded higher on Tuesday, hitting a three-day high of USD4.41 per million British thermal units as investors readjusted positions following the long holiday weekend and after the July contract expiration last Friday.
Elsewhere, light sweet crude oil futures for delivery in August jumped 1.65% to trade at USD96.58 a barrel, while heating oil for August delivery advanced 1% to trade at USD2.952 per gallon.