Investing.com - U.S. natural gas futures struggled for direction on Monday, flipping between gains and losses as updated weather forecasting models pointed to mild temperatures across most parts of the U.S. in the week ahead.
Natural gas for delivery in August on the New York Mercantile Exchange inched up 0.3 cents, or 0.11%, to trade at $2.759 per million British thermal units by 14:30GMT, or 10:30AM ET.
Last week, natural gas futures declined 6.3 cents, or 1.61%, the second straight weekly loss, as warm temperatures in key U.S. gas-consumption regions gave way to cooler readings.
Natural gas storage in the U.S. rose by 64 billion cubic feet last week, according to the U.S. Energy Information Administration, above forecasts for an increase of 59 billion. That compared with builds of 39 billion cubic feet in the prior week, 98 billion a year earlier and a five-year average of 77 billion cubic feet.
Total U.S. natural gas storage stood at 3.243 trillion cubic feet, 15.6% higher than levels at this time a year ago and 18.1% 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.
Despite recent losses, prices are still up nearly 40% since late May as expectations have grown that hot summer weather will lead to heavy 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.