Investing.com - Natural gas prices fell on Wednesday after investors locked in gains from a late-season cool snap and sold the commodity for profits.
On the New York Mercantile Exchange, natural gas futures for delivery in June traded at $4.814 per million British thermal units during U.S. trading, down 0.36%. The commodity hit session high of $4.842 and a low of $4.752.
The June contract settled up 0.67% on Tuesday to end at $4.831 per million British thermal units.
Natural gas futures were likely to find support at $4.646 per million British thermal units, Friday''s low, and resistance at $4.846, Tuesday''s high.
A late-season cool snap likely hiked demand for heating, though by afternoon trading on Wednesday, investors bet demand that stockpiles remain largely unaffected.
Thursday’s closely-watched weekly supply data should show an injection of 75 billion cubic feet in the week ended April 25.
Total U.S. natural gas storage stood at an 11-year low of 899 billion cubic feet as of last week. Stocks are 1.008 trillion cubic feet below the five-year average of 1.907 trillion cubic feet for this time of year.
Producers would need to add 2.6 trillion to 2.9 trillion cubic feet to storage by November 1 to meet typical winter demand, analysts said.
Meanwhile, updated weather forecasting models called for seasonably mild weather in the coming days, which should cut into demand for heating.
Spring and fall see the weakest demand for natural gas in the U.S, as the absence of extreme temperatures curbs demand for heating and air conditioning.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in June were down 1.54% at $99.61 a barrel, while heating oil for June delivery were down 1.33% at $2.9242 per gallon.