Investing.com - Natural gas futures traded lower on Monday after updated weather-forecasting models called for a storm system to trek across the central and eastern U.S. and bring damp, cooler weather, which should cut into demand for air conditioning.
On the New York Mercantile Exchange, natural gas futures for delivery in July traded at $4.701 per million British thermal units during U.S. trading, down 0.19%. The commodity hit a session high of $4.743 and a low of $4.652.
The July contract settled up 0.19% on Friday to end at $4.710 per million British thermal units.
Natural gas futures were likely to find support at $4.576 per million British thermal units, Wednesday''s low, and resistance at $4.743, the session high.
A storm system tracking across the south-central U.S. dumping heavy showers will gradually move east over the coming days and bring with it mild, wet conditions, which should crimp demand for air conditioning.
The forecast sent natural gas prices falling, though prices didn''t plummet on expectations for a quick return of seasonably warm temperatures.
In its daily weather forecast, Natgasweather.com said high pressure is building in the storm system''s wake and will center over Texas and surrounding states with temperatures of 90s-105⁰F.
Natgasweather.com added warm conditions will also spread into the Mid-Atlantic and Northeast, with many heavily populated cities warming into the 80s this weekend, which cushioned natural gas''s losses.
Elsewhere, markets continued to digest Thursday''s U.S. inventory report.
The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. in the week ended May 30 rose by 119 billion cubic feet, above forecasts for an increase of 116 billion cubic feet.
Total U.S. natural gas storage stood at 1.499 trillion cubic feet. Stocks were 737 billion cubic feet less than last year at this time and 896 billion cubic feet below the five-year average of 2.395 trillion cubic feet for this time of year.
Producers would need to add approximately 2.5 trillion cubic feet to storage by November 1 to meet typical winter demand, analysts said.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in July were up 1.44% at $104.14 a barrel, while Heating Oil for July delivery were up 0.67% at $2.8905 per gallon.