Investing.com - Natural gas prices edged lower on Tuesday after updated weather forecasting models eased up on calls for above-normal temperatures running through early September, which allowed for profit taking.
Investors also sold the commodity ahead of the expiration of the front-month September contract.
On the New York Mercantile Exchange, natural gas futures for delivery in October traded at USD3.517 per million British thermal units during U.S. trading, down 1.03%. The October contract settled up 0.91% at USD3.553 per million British thermal units on Monday.
The commodity hit a session low of USD3.483 and a high of USD3.556.
Updated weather forecasting models pointed to seasonal temperatures hovering over a good portion of the heavily populated eastern U.S. through September 10.
Earlier forecasts called for above-normal temperatures, which sparked rallies in previous sessions though forecasts for moderate mercury readings allowed for profit taking on Tuesday.
Demand for natural gas tends to rise at the country's thermal power plants amid heat waves, as homes and businesses throttle up their air conditioners.
Elsewhere, the September contract is due to expire at the end of Tuesday’s trading session.
Contract expiration often leads to volatile sessions as market participants look to close out positions or reposition their portfolios.
Meanwhile, U.S. supply levels also remained in focus. Total U.S. natural gas storage stood at 3.063 trillion cubic feet as of last week, 1.5% above the five-year average but still 7.2% below last year's level.
Early injection estimates for this week’s storage data range from 53 billion cubic feet to 69 billion cubic feet, compared to a 64 billion cubic feet increase during the same week a year earlier.
The five-year average for the week is a build of 66 billion cubic feet.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in October were up 2.69% and trading at USD108.77 a barrel, while heating oil for October delivery were up 2.46% and trading at USD3.1594 per gallon.
Investors also sold the commodity ahead of the expiration of the front-month September contract.
On the New York Mercantile Exchange, natural gas futures for delivery in October traded at USD3.517 per million British thermal units during U.S. trading, down 1.03%. The October contract settled up 0.91% at USD3.553 per million British thermal units on Monday.
The commodity hit a session low of USD3.483 and a high of USD3.556.
Updated weather forecasting models pointed to seasonal temperatures hovering over a good portion of the heavily populated eastern U.S. through September 10.
Earlier forecasts called for above-normal temperatures, which sparked rallies in previous sessions though forecasts for moderate mercury readings allowed for profit taking on Tuesday.
Demand for natural gas tends to rise at the country's thermal power plants amid heat waves, as homes and businesses throttle up their air conditioners.
Elsewhere, the September contract is due to expire at the end of Tuesday’s trading session.
Contract expiration often leads to volatile sessions as market participants look to close out positions or reposition their portfolios.
Meanwhile, U.S. supply levels also remained in focus. Total U.S. natural gas storage stood at 3.063 trillion cubic feet as of last week, 1.5% above the five-year average but still 7.2% below last year's level.
Early injection estimates for this week’s storage data range from 53 billion cubic feet to 69 billion cubic feet, compared to a 64 billion cubic feet increase during the same week a year earlier.
The five-year average for the week is a build of 66 billion cubic feet.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in October were up 2.69% and trading at USD108.77 a barrel, while heating oil for October delivery were up 2.46% and trading at USD3.1594 per gallon.