Investing.com - Natural gas futures came off session lows in Wednesday trading as investors weighed below-normal temperatures across the eastern U.S. and uncertainty over Thursday''s weekly supply report.
On the New York Mercantile Exchange, natural gas futures for delivery in August traded at $4.215 per million British thermal units during U.S. trading, up 0.26%. The commodity hit a session high of $4.229 and a low of $4.168.
The August contract settled down 0.50% on Tuesday to end at $4.204 per million British thermal units.
Natural gas futures were likely to find support at $4.129 per million British thermal units, Tuesday''s low, and resistance at $4.608, the high from June 26.
Gas prices fell in recent session amid weather forecasts calling for below-normal temperatures trekking across portions of the eastern U.S., which should curb demand for air conditioning.
Bargain hunters sent prices back into the positive territory, as typical summertime temperatures should return and hike demand for air conditioning, thus prompting thermal power producers to burn more of the commodity to meet demand.
In its July 9-15 forecast, Natgasweather.com reported that a Canadian weather system will bring showers, thunderstorms and cooler temperatures to the Midwest and New England in the coming days, while hot temperatures will prevail over the southern and western U.S.
"After the Midwest weather system departs, temperatures will again surge into the 80s and 90s over the northern U.S. as the ridge returns this weekend. Texas, the southern Plains, and the Southeast will also see temperatures warm several degrees above normal as upper 90s and 100s become widespread," Natgasweather.com reported.
Still, prices didn''t surge, as "the return of northern U.S. heat will be short lived as another cooler-than-normal Canadian weather system will weaken the ridge and bring below-normal temperatures to the U.S. next week," Natgasweather.com reported.
Elsewhere, supplies remained in focus.
Thursday’s government report is expected to show that natural gas storage in the U.S. rose by 92 billion cubic feet in the week ended July 4. The five-year average increase for the period is 72 billion.
Natural gas stockpiles have grown by 100 or more billion cubic feet for eight consecutive weeks, a record streak since 1994.
Total U.S. natural gas storage stood at 1.929 trillion cubic feet as of last week, 25.7% below their level this time last year and 29.1% below the five-year average.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in August were down 1.01% at $102.36 a barrel, while heating oil for August delivery were down 0.19% at $2.8682 per gallon.
Please LIKE our Facebook page - it makes us stronger: