Investing.com - U.S. natural gas futures declined on Monday, falling for the first time in three sessions as investors locked in gains after prices climbed to a two-week high.
Natural gas for delivery in August on the New York Mercantile Exchange shed 3.7 cents, or 1.35%, to trade at $2.706 per million British thermal units by 14:26GMT, or 10:26AM ET.
Prices climbed to a daily peak of $2.785 earlier, the most since July 11, as investors bet a heat wave making its way across the continental U.S. will prompt households to ramp up their air conditioning.
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.
Natural gas storage in the U.S. rose by 34 billion cubic feet last week, according to the U.S. Energy Information Administration, below forecasts for an increase of 39 billion. That compared with an increase of 64 billion cubic feet in the prior week, 59 billion a year earlier and a five-year average of 61 billion cubic feet.
Total U.S. natural gas storage stood at 3.277 trillion cubic feet, 14.4% higher than levels at this time a year ago and 17.1% 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.
Natural gas prices are down nearly 10% since reaching a 13-month high on July 1 amid speculation that July heat won’t prevent stockpiles from reaching a record before the winter.