Investing.com - Natural gas prices fell on Wednesday after investors locked in gains from a weather-fueled rally and sold the commodity for profits a day ahead of the U.S. weekly inventory report.
On the New York Mercantile Exchange, natural gas futures for delivery in June traded at $4.746 per million British thermal units during U.S. trading, down 1.11%. The commodity hit session high of $4.825 and a low of $4.728.
The June contract settled up 2.37% on Tuesday to end at $4.799 per million British thermal units.
Natural gas futures were likely to find support at $4.652 per million British thermal units, Monday's low, and resistance at $4.806, Tuesday's high.
A West Coast heat wave sparked expectations for homes to throttle up their air conditioning, which sent natural gas prices spiking on Tuesday.
Above normal temperatures could also trek across the U.S. and head eastward, according to weather forecasts, which supported the commodity as well.
The National Weather Service reported that highs for the Chicago area could reach 84 degrees Fahrenheit on Thursday, while Washington, D.C. could see a high temperature of 82 degrees on Friday.
Profit taking wiped out gains, as many investors jumped to the sidelines to wait for Thursday's weekly stockpile numbers.
Market expectations called for an injection of 73 billion cubic feet in the week ended May 2. The five-year average change for the week is a build of 58 billion cubic feet.
Total U.S. natural gas storage stood at an 11-year low of 981 billion cubic feet. Stocks were 50% below the five-year average of 1.965 trillion cubic feet for this time of year and 45% lower than last year at this time.
Producers would need to add 2.6 trillion to 2.9 trillion cubic feet to storage by November 1 to meet typical winter demand, analysts said.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in June were up 1.21% at $100.70 a barrel, while heating oil for June delivery were up 1.12% at $2.9199 per gallon.