Breaking News

Natural gas futures rally 2% after Monday’s sell-off

CommoditiesJul 23, 2013 10:40AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
Investing.com - Natural gas futures regained strength on Tuesday, as investors returned to the market to seek cheap valuation’s after Monday’s sell-off.

Market players continued to focus on near-term weather forecasts to gauge the strength of demand for the fuel.

On the New York Mercantile Exchange, natural gas futures for delivery in August traded at USD3.751 per million British thermal units during U.S. morning trade, up 2% on the day.       

The August contract rose by as much as 2.2% earlier in the day to hit a session high of USD3.762 per million British thermal units.

Natural gas prices tumbled by as much as 4% on Monday after weather forecasting models pointed to milder weather temperatures across most parts of the U.S. Northeast and Midwest for the rest of July.

The U.S. National Weather Service forecast predicted below-normal temperatures covering the heavily populated Northeast and Midwest regions over the next six-to-14 days.

Mild summer temperatures reduce the need for gas-fired electricity to cool homes.

Meanwhile, U.S. supply levels also remained in focus. Total U.S. natural gas storage stood at 2.745 trillion cubic feet as of last week, 1.2% below the five-year average and 13% below last year's level.

Early injection estimates for this week’s storage data range from 45 billion cubic feet to 60 billion cubic feet, compared to a 26 billion cubic feet increase during the same week a year earlier.

The five-year average for the week is a build of 53 billion cubic feet.

Elsewhere on the NYMEX, light sweet crude oil futures for delivery in September fell 0.1% to trade at USD106.90 a barrel, while heating oil for August delivery added 0.1% to trade at USD3.069 per gallon.

Natural gas futures rally 2% after Monday’s sell-off

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Are you sure you want to delete this chart?
Write your thoughts here
Replace the attached chart with a new chart ?
Post also to:
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Post 1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email