Investing.com - Natural gas futures fell on Monday after updated weather-forecasting models called for a break in a U.S. heat wave, which should curb demand for air conditioning.
On the New York Mercantile Exchange, natural gas futures for delivery in August traded at $4.477 per million British thermal units during U.S. trading, down 1.66%. The commodity hit a session high of $4.592 and a low of $4.475.
The August contract settled down 1.11% on Friday to end at $4.552 per million British thermal units.
Natural gas futures were likely to find support at $4.364 per million British thermal units, the low from May 27, and resistance at $4.773, Wednesday''s high.
Weather forecasts called for a break in a heat wave across the U.S. over the next five days, though expectations for a return of hotter weather in the Midwest and eastern U.S. next week prevented prices from falling too far.
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 113 billion cubic feet of gas into storage last week, above forecasts for an increase of 110 billion cubic feet.
Total U.S. natural gas storage stood at 1.719 trillion cubic feet as of last week, nearly 29.1% below their level this time last year and 33.1% below the five-year average.
Natural gas stockpiles have grown by more than 100 billion cubic feet for six consecutive weeks, a record streak since 1994.
Producers would need to add approximately 2.6 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 August were down 0.73% at $106.05 a barrel, while heating oil for August delivery were down 0.72% at $3.0364 per gallon.