Investing.com - U.S. natural gas futures declined on Monday, but held near the highest level in almost three-months amid forecasts for warmer than normal temperatures across most parts of the continental U.S. in the days ahead.
Natural gas for delivery in October on the New York Mercantile Exchange shed 2.9 cents, or 0.98%, to trade at $2.919 per million British thermal units by 10:17AM ET (14:17GMT), not far from last week's two-and-a-half-month peak of $2.978.
Futures soared more than 5% last week after weather reports suggested more heat and high demand for gas-fired power throughout September.
Despite the recent rally, gains are likely to remain limited as traders react to the reality that higher summer demand for the commodity is coming to an end.
Demand for natural gas tends to rise in the summer months as warmer temperatures increase the need for gas-fired electricity to power air conditioning.
But with autumn due to start on September 22, power burns to feed air conditioning demand have probably peaked for now, market analysts said.
Total U.S. natural gas in storage currently stands at 3.499 trillion cubic feet, according to the U.S. Energy Information Administration, 5.3% higher than levels at this time a year ago and 8.6% above the five-year average for this time of year.
Unless intense late-summer heat boosts demand from power plants, stockpiles could possibly test physical storage limits of 4.3 trillion cubic feet at the end of October.