Investing.com - U.S. natural gas futures fell to an 11-month low on Monday, 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 $3.623 per million British thermal units, a level not seen since November 20, 2013.
Prices recovered to last trade at $3.634 during U.S. morning hours, down 6.5 cents, or 1.74%.
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 released Friday called for mild temperatures across much of the U.S. 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, investors continued to digest Thursday's weekly inventory data, which showed that natural gas storage in the U.S. rose by 94 billion cubic feet last week.
The five-year average change for the week is an increase of 70 billion cubic feet.
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 93 cents, or 1.15%, to trade at $80.08 a barrel, while heating oil for December delivery dipped 0.78% to trade at $2.448 per gallon.