Investing.com - U.S. natural gas prices fell to an 11-month low for the fourth consecutive session 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 December fell to a session low of $3.620 per million British thermal units, a level not seen since November 20, 2013.
Prices recovered to last trade at $3.642 during U.S. morning hours, up 0.4 cents, or 0.12%.
A day earlier, natural gas prices lost 6.1 cents, or 1.65%, to settle at $3.637.
Futures were likely to find support at $3.559 per million British thermal units, the low from October 24, and resistance at $3.718, the high from October 22.
Updated weather-forecasting models called for above-average temperatures across much of the lower 48 states into early November.
Bearish speculators are betting on the mild weather reducing early-winter demand for the heating fuel. The heating season from November through March is the peak demand period for U.S. gas consumption.
Meanwhile, the U.S. Energy Information Administration's next storage report slated for release on Thursday is expected to show an increase of 85 billion cubic feet for the week ending October 24.
Inventories rose by 45 billion cubic feet in the same week a year earlier, while the five-year average change is a build of 59 billion cubic feet.
Natural gas storage in the U.S. rose by 94 billion cubic feet last week.
Injections of gas into storage have surpassed the five-year average for 27 consecutive weeks, alleviating concerns over tightening supplies.
Total U.S. natural gas storage stood at 3.393 trillion cubic feet as of last week, narrowing the deficit to the five-year average to 9.1% from a record 54.7% at the end of March.
Elsewhere on the Nymex, crude oil for delivery in December lost 31 cents, or 0.38%, to trade at $80.69 a barrel, while heating oil for December delivery dipped 0.38% to trade at $2.453 per gallon.