Investing.com - U.S. natural gas futures edged lower in holiday-thinned trade on Monday, after the latest U.S. weather model called for mild summer temperatures over the next two weeks, which should increase cooling demand during that time.
Natural gas prices have closely tracked weather forecasts in recent weeks, as traders try to gauge the impact of shifting outlooks on spring heating 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.
Natural gas for delivery in July on the New York Mercantile Exchange dipped 0.6 cents, or 0.28%, to trade at $2.154 per million British thermal units by 13:32GMT, or 9:32AM ET.
The July contract lost 1.7% last week amid concerns over record-high storage levels.
Total U.S. natural gas storage stood at 2.8 trillion cubic feet as of last week, according to the U.S. Energy Information Administration, 37% higher than levels at this time a year ago and above the five-year average for this time of year.
Unless intense summer heat boosts demand from power plants, stockpiles will test physical storage limits of 4.3 trillion cubic feet at the end of October.
Elsewhere on the Nymex, crude oil for delivery in July shed 9 cents, or 0.18%, to trade at $49.24 a barrel, while heating oil for July delivery dipped 0.65% to trade at $1.491 per gallon.