Investing.com - Natural gas prices dipped on Tuesday after investors locked in gains from an earlier rally on news of a return of hotter weather and sold the commodity for profits.
On the New York Mercantile Exchange, natural gas futures for delivery in September traded at USD3.459 per million British thermal units during U.S. afternoon trading, down 0.13%.
The September contract settled up 2.82% at USD3.463 per million British thermal units on Monday.
Prices shot up on Monday after weather forecasting services called for above-normal temperatures to settle in from the northeastern U.S. to the West Coast through early September.
Some models called for much hotter temperatures across the central U.S. Plains states through the end of the month.
Demand for natural gas tends to rise at the country's thermal power plants when temperatures climb, as homes and businesses throttle up their air conditioners.
By Tuesday, however, profit taking sent prices falling.
Meanwhile, markets began to look ahead to weekly supply data.
Total U.S. natural gas storage stood at 3.006 trillion cubic feet in the week ending Aug. 9, 1.5% above the five-year average.
Early injection estimates for this week’s storage data range from 71 billion cubic feet to 76 billion cubic feet, compared to a 43 billion cubic feet increase during the same week a year earlier.
The five-year average for the week is a build of 56 billion cubic feet.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in October were down 0.70% and trading at USD106.11a barrel, while heating oil for September delivery were up 0.71% and trading at USD3.0929 per gallon.
On the New York Mercantile Exchange, natural gas futures for delivery in September traded at USD3.459 per million British thermal units during U.S. afternoon trading, down 0.13%.
The September contract settled up 2.82% at USD3.463 per million British thermal units on Monday.
Prices shot up on Monday after weather forecasting services called for above-normal temperatures to settle in from the northeastern U.S. to the West Coast through early September.
Some models called for much hotter temperatures across the central U.S. Plains states through the end of the month.
Demand for natural gas tends to rise at the country's thermal power plants when temperatures climb, as homes and businesses throttle up their air conditioners.
By Tuesday, however, profit taking sent prices falling.
Meanwhile, markets began to look ahead to weekly supply data.
Total U.S. natural gas storage stood at 3.006 trillion cubic feet in the week ending Aug. 9, 1.5% above the five-year average.
Early injection estimates for this week’s storage data range from 71 billion cubic feet to 76 billion cubic feet, compared to a 43 billion cubic feet increase during the same week a year earlier.
The five-year average for the week is a build of 56 billion cubic feet.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in October were down 0.70% and trading at USD106.11a barrel, while heating oil for September delivery were up 0.71% and trading at USD3.0929 per gallon.