Investing.com - Natural gas futures swung between small gains and losses on Tuesday, as market players continued to assess the outlook for U.S. demand and supply levels.
On the New York Mercantile Exchange, natural gas for delivery in July held in a range between $4.673 and $4.726 per million British thermal units. Prices last traded at $4.701 during U.S. morning hours, down 0.14%, or 0.6 cents.
Natural gas futures hit $4.886 on Monday, the most since February 26, before turning lower to settle at $4.707, down 0.68%, or 3.2 cents.
Futures were likely to find support at $4.520 per million British thermal units, the low from June 12 and resistance at $4.886, the high from June 16.
Updated weather-forecasting models showed that warmer weather was expected in the U.S. Central and East over the next five days before cooling in the East over the next six-to-10 days.
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.
Meanwhile, market players continued to assess the outlook for U.S. supply levels. Utilities added 107 billion cubic feet of gas into storage last week, below forecasts for an increase of 110 billion cubic feet.
Total U.S. natural gas storage stood at 1.606 trillion cubic feet as of last week, nearly 31% below their level this time last year and 35% below the five-year average.
Early injection estimates for this Thursday’s storage data range from 90 billion cubic feet to 105 billion cubic feet.
Stockpiles increased by 92 billion cubic feet in the same week a year earlier, while the five-year average build for the week is 87 billion.
Producers would need to add approximately 2.6 trillion cubic feet to storage by November 1 to meet typical winter demand, analysts said.
Elsewhere on the Nymex, crude oil for delivery in August eased down 0.14%, or 15 cents, to trade at $106.16 a barrel, while heating oil for July delivery tacked on 0.21% to trade at $3.00 4per gallon.