Investing.com - U.S. natural gas futures edged higher on Tuesday, extending gains from the prior session as concerns over the impact of Hurricane Irma faded away.
U.S. natural gas for October delivery was at $2.984 per million British thermal units by 8:22AM ET (1222GMT), up 3.4 cents, or around 1.2%.
Futures climbed 6.0 cents, or 2.1%, on Monday, after Hurricane Irma struck the U.S. southeast with less force than once feared, easing worries over a hit to energy demand.
Despite gains, prices look set to remain on the back foot in the weeks ahead as traders react to the reality that higher summer demand for the commodity is coming to an end.
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.
But with autumn due to start on September 22, power burns to feed air conditioning demand have probably peaked for now, market analysts said.
Total natural gas in storage currently stands at 3.220 trillion cubic feet, according to the U.S. Energy Information Administration, around 6.2% lower than levels at this time a year ago and mostly in line with the five-year average for this time of year.
Early market expectations for this week's storage data due on Thursday is for a build in a range between 72 and 83 billion cubic feet in the week ended September 8.
That compares with a gain of 65 billion cubic feet in the preceding week, a build of 62 billion a year earlier and a five-year average rise of 63 billion cubic feet.
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