Investing.com - Natural gas prices moved lower on Thursday on expectations that mild autumn temperatures will hold across much of the U.S. and curb demand for both heating and air conditioning, prompting thermal power plants to burn less of the commodity as a result.
A bullish supply report cushioned losses.
On the New York Mercantile Exchange, natural gas futures for delivery in November were down 0.11% at $3.655 per million British thermal units during U.S. trading. The commodity hit a session low of $3.609, and a high of $3.682.
The November contract settled down 1.40% on Wednesday to end at $3.659 per million British thermal units.
Natural gas futures were likely to find support at $3.545 per million British thermal units, the low from Nov. 19, 2013, and resistance at $3.718, Wednesday's.
Updated weather-forecasting models called for mild temperatures across much of the U.S. into early November.
"A weather system will track across the north-central U.S. to begin the outlook with cooler-than-normal temperatures. It will gradually push into the Northeast with reinforcing cool blasts set to follow. However, high pressure will strengthen over the southern and central U.S. late in the outlook and will bring mild temperatures with little demand for heating or cooling," Natgasweather.com reported in its Oct. 30-Nov.5 outlook.
"Weather systems will continue to impact the Northwest with showers, while offshore flow will bring warm temperatures to California. The pattern during the outlook is very messy and will require fine tuning."
Hopes for colder weather to arrive after the first week of November cushioned losses as did a bullish weekly inventory report.
The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. in the week ending Oct. 17 rose by 94 billion cubic feet, below expectations for an increase of 97 billion.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in December were up 1.23% at $81.51 a barrel, while heating oil for November delivery were up 0.79% at $2.4929 per gallon.