Investing.com - Natural gas futures backed off one-month highs on Monday as cooler weather across many regions of the U.S. looked likely to crimp demand from power plants.
On the New York Mercantile Exchange, natural gas futures for delivery in July were down 1.14% to $4.654 per million British thermal units. On Thursday, natural gas for July delivery rose to highs of $4.736.
Most forecasts on Monday said the Midwest and Texas would see cooler-than-average temperatures over the next five days, while the East and West coasts would experience warmer than normal conditions.
Power plants account for 31% of gas consumption, according to the Energy Information Administration, the Energy Department’s statistical arm.
Last week the EIA reported that natural gas stockpiles in the week ended May 30 rose by 119 billion cubic feet.
Total stocks now stand at 1.499 trillion cubic feet, down 737 billion cubic feet from a year ago and 896 billion cubic feet below the five-year average, the government said. Producers typically replenish inventories between April and October, when demand is lower.
Elsewhere on the NYMEX, crude oil futures for delivery in July rallied 1.44% to $104.14 a barrel, while heating oil contracts for July delivery were up 0.86% to $2.8956 per gallon.