Investing.com - U.S. natural gas futures declined on Tuesday, extending losses from the prior session as forecasts for fading heat in the eastern and central U.S. drove down prices.
Natural gas for delivery in June on the New York Mercantile Exchange fell by as much as 2.5%, to a daily low of $2.134 per million British thermal units. It last stood at $2.152 by 14:37GMT, or 10:37AM ET, down 3.5 cents, or 1.6%.
A day earlier, gas futures plunged 8.0 cents, or 3.53%, as updated weather forecasting models pointed to mostly average or below normal temperatures in the lower 48 states through May 1 as hot weather in the South ebbs.
Natural gas prices have closely tracked weather forecasts in recent weeks, as traders try to gauge the impact of shifting outlooks on spring gas demand.
Gas use typically hits a seasonal low with spring's mild temperatures, before warmer weather increases demand for gas-fired electricity generation to power air conditioning.
Total U.S. natural gas storage stood at 2.484 trillion cubic feet as of last week, according to the U.S. Energy Information Administration, 35.4% higher than levels at this time a year ago and 32.7% above the five-year average for this time of year.
The EIA's next storage report due on Thursday is expected to show a build of approximately 70 billion cubic feet for the week ending April 22.
That compares with a gain of 7 billion cubic feet in the prior week and a five-year average of around 52 billion.
Natural gas futures are up almost 24% since hitting a 20-year low of $1.611 in early March. Despite recent gains, prices are still down nearly 4% so far this year as weak winter heating demand, near-record production and record-high storage levels dragged down prices.
Elsewhere on the Nymex, crude oil for delivery in June jumped 70 cents, or 1.64%, to trade at $43.34 a barrel, while heating oil for June delivery rose 1.87% to trade at $1.321 per gallon.