Investing.com - U.S. natural gas futures fell to an 11-month low for the second consecutive day on Tuesday, as investors bet that mild weather will dampen early-winter demand for the heating fuel.
On the New York Mercantile Exchange, natural gas for delivery in November slumped to a session low of $3.640 per million British thermal units, a level not seen since November 20, 2013.
Prices last traded at $3.642 during U.S. morning hours, down 2.5 cents, or 0.69%.
A day earlier, natural gas futures tumbled 9.6 cents, or 2.55%, to settle at $3.670 per million British thermal units.
Futures were likely to find support at $3.549 per million British thermal units, the low from November 20, and resistance at $3.745, the high from October 20.
Updated weather-forecasting models showed that cold temperatures along the U.S. East Coast will give way to more seasonal readings from October 27 through October 31.
The heating season from November through March is the peak demand period for U.S. gas consumption.
Meanwhile, investors continued to digest Thursday's weekly inventory data, which showed that natural gas storage in the U.S. rose by a more than expected 94 billion cubic feet last week.
Inventories rose by 79 billion cubic feet in the same week a year earlier, while the five-year average change is a build of 78 billion cubic feet.
Injections of gas into storage have surpassed the five-year average for 26 consecutive weeks, alleviating concerns over tightening supplies.
Total U.S. natural gas storage stood at 3.299 trillion cubic feet as of last week, narrowing the deficit to the five-year average to 9.9% from a record 54.7% at the end of March.
The Energy Information Administration's next storage report is slated for release on Thursday, October 23, with analysts expecting a build in the range of 95 to 98 billion cubic feet for the week ending October 17.
The five-year average change for the week is an increase of 70 billion cubic feet.
Elsewhere on the Nymex, crude oil for delivery in December tacked on 51 cents, or 0.62%, to trade at $82.42 a barrel, while heating oil for November delivery advanced 0.68% to trade at $2.502 per gallon.