Investing.com - Natural gas futures swung between small gains and losses on Tuesday, as market players assessed the outlook for U.S. demand and supply levels.
On the New York Mercantile Exchange, natural gas for delivery in July eased down 0.1%, or 0.4 cents, to trade at $4.607 per million British thermal units during U.S. morning hours.
Prices held in a range between $4.594 and $4.620 per million British thermal units. Natural gas futures rallied 1.54%, or 7.0 cents, on Monday to settle at $4.612.
Futures were likely to find support at $4.489 per million British thermal units, the low from May 30 and resistance at $4.665, the high from May 29.
Updated weather-forecasting models called for above-normal temperatures to settle in across parts of the lower 48 U.S. states through the first week of June.
Demand for natural gas tends to rise in the summer months as warmer temperatures increase the need for gas-fired electricity to power air conditioning.
Meanwhile, market players continued to assess the outlook for U.S. supply levels. Utilities added 114 billion cubic feet of gas into storage last week, the largest weekly injection since 2009.
Total U.S. natural gas storage stood at 1.380 trillion cubic feet, nearly 40% below their level this time last year and 45% below the five-year average.
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, U.S. crude oil for delivery in July eased down 0.07%, or 7 cent, to trade at $102.40 a barrel, while heating oil for July delivery shed 0.28% to trade at $2.869 per gallon.