Natural gas futures edged lower on Tuesday, slumping to a three-day low after forecasts showed mild weather in the Northeastern U.S. states next week, reducing demand expectations for the fuel.
On the New York Mercantile Exchange, natural gas futures for July delivery traded at USD4.591 per million British thermal units during U.S. morning trade, shedding 0.42%.
It earlier fell to USD4.572 per million British thermal units, the lowest price since June 9.
The Commodity Weather Group said that temperatures will be cooler-than-normal in the Northeastern states through June 18.
The weather group added that the recent heat wave that engulfed the Eastern U.S. peaked over the weekend, with record high temperatures recorded in Baltimore and Washington DC.
Mild summer temperatures reduce the need for gas-fired electricity to cool homes, limiting demand for natural gas.
However, losses were limited as hot weather was expected to return to most regions across the U.S. in the last week of June.
Industry weather group MDA Federal said that it expected warmer-than-normal temperatures in the southern U.S. states and more hot temperatures in the Midwest and East in its ten-day forecast.
On Monday, prices fell sharply, tumbling nearly 4% after Goldman Sachs said the fuel’s recent rally was “unsustainable” and recommended investors sell their positions.
Elsewhere, light sweet crude oil futures for delivery in July jumped 1.1% to trade at USD97.92 a barrel, while heating oil for July delivery rallied 1.35% to trade at USD3.139 per gallon during U.S. morning trade.
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By. ForexPros.com
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