Investing.com - U.S. natural gas prices held near a five-week low struck in the previous session on Tuesday, as forecasts for mild weather across the U.S. through mid-June dampened near-term demand expectations for the fuel.
On the New York Mercantile Exchange, natural gas for delivery in July shed 1.1 cents, or 0.43%, to trade at $2.638 per million British thermal units during U.S. morning hours. Prices traded in a range between $2.636 and $2.665.
A day earlier, natural gas futures slumped to $2.603, the weakest level since April 30, before turning modestly higher to close at $2.649, up 0.7 cents, or 0.26%.
Futures were likely to find support at $2.603 per million British thermal units, the low from June 1, and resistance at $2.722, the high from May 29.
Weather forecasting models called for mostly normal temperatures across the U.S. over the next 10-to-14 days, suggesting little demand for the fuel and paving the way for additional hefty inventory builds in the weeks ahead.
Spring usually sees the weakest demand for natural gas in the U.S, as the absence of extreme temperatures curbs demand for heating and air conditioning.
Meanwhile, the U.S. Energy Information Administration's next storage report slated for release on June 4 is expected to show a build of approximately 110 billion cubic feet for the week ending May 29.
Supplies rose by 118 billion cubic feet in the same week last year, while the five-year average change is an increase of 92 billion cubic feet.
The EIA said last week that natural gas storage in the U.S. rose by 112 billion cubic feet, compared to expectations for an increase of 99 billion and following a build of 92 billion cubic feet in the preceding week.
The five-year average gain for the period was an increase of 95 billion cubic feet, while supplies rose by 113 billion cubic feet during the comparable period a year earlier.
Total U.S. natural gas storage stood at 2.101 trillion cubic feet as of last week, 0.8% below the five-year average for this time of year.
Last spring, supplies were 55% below the five-year average, indicating producers have made up for most of last winter’s unusually strong demand.
Elsewhere on the Nymex, crude oil for delivery in July tacked on 50 cents, or 0.83%, to trade at $60.70 a barrel, while heating oil for July delivery advanced 0.42% to trade at $1.934 per gallon.