Investing.com - U.S. natural gas futures fell for the third straight day on Wednesday, as traders looked ahead to fresh weekly information on U.S. gas inventories to gauge the strength of demand for the fuel.
The U.S. Energy Information Administration's storage report slated for release 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 rise of around 52 billion cubic feet.
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.
Natural gas for delivery in June on the New York Mercantile Exchange lost 3.2 cents, or 1.48%, to trade at $2.127 per million British thermal units by 13:40GMT, or 9:40AM ET.
A day earlier, natural gas futures slumped 2.8 cents, or 1.28%, as forecasts for fading heat in the eastern and central U.S. drove down prices.
Updated weather forecasting models pointed to mostly average or below normal temperatures in the lower 48 states through May 1. 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.
Natural gas futures are up almost 22% since hitting a 20-year low of $1.611 in early March. Despite recent gains, prices are still down nearly 6% 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 88 cents, or 2.0%, to trade at $44.92 a barrel, while heating oil for June delivery rose 2.43% to trade at $1.371 per gallon.