Investing.com - Natural gas futures declined for the first time in three sessions on Wednesday, as investors locked in gains from a recent rally which took prices to a two-month high on Tuesday.
On the New York Mercantile Exchange, natural gas for delivery in June fell to a session low of $4.753 per million British thermal units. Natural gas last traded at $4.770 during U.S. morning hours, down 1.3%, or 6.3 cents.
The June contract rallied to $4.848 per million British thermal units on Tuesday, the most since February 25, before settling at 4.831, up 0.67%, or 3.2 cents.
Futures were likely to find support at $4.648 per million British thermal units, the low from April 28 and resistance at $4.848, the high from April 29.
Market players looked ahead to Thursday’s closely-watched weekly supply data, amid expectations for 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 slightly cooler than normal temperatures over the next 15 days.
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.
Approximately 52% of U.S. households use natural gas for heating, according to the Energy Department.
Elsewhere on the Nymex, U.S. crude oil for delivery in June tumbled 1.61%, or $1.63, to trade at $99.65 a barrel, while heating oil for June delivery lost 1.15% to trade at $2.929 per gallon.
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