👀 Ones to watch: The MOST undervalued stocks to buy right nowSee Undervalued Stocks

U.S. natural gas futures little changed after worst day in 6 months

Published 2017-06-20, 09:26 a/m
© Reuters.  U.S. natural gas futures little changed near 3-month low
NG
-

Investing.com - U.S. natural gas futures were little changed on Tuesday, one day after suffering its biggest daily loss since January as updated weather forecasting models pointed to weak demand in the weeks ahead.

U.S. natural gas for July delivery was at $2.889 per million British thermal units by 9:25AM ET (1325GMT), down half a cent. It fell to its lowest since March 17 at $2.877 in the prior session.

Natural gas prices lost 14.3 cents, or around 4.7%, on Monday, their worst one-day drop since January.

A cool front will sweep across the eastern U.S. the next few days with heavy showers and powerful thunderstorms, thereby dropping highs into the upper 60s and 70s with little demand for heating or cooling.

Longer-term models showed considerably cooler temperatures for late next weekend into the following week as weather systems over southern Canada advance more aggressively into the northern and eastern U.S.

Natural gas prices have closely tracked weather forecasts in recent weeks, as traders try to gauge the impact of shifting outlooks on summer heating demand.

Gas use typically hits a seasonal low with spring's mild temperatures, before warmer weather increases demand for gas-fired electricity generation to power air conditioning.

Nearly 50% of all U.S. households use gas for heating.

Total natural gas in storage currently stands at 2.709 trillion cubic feet, according to the U.S. Energy Information Administration, 10.6% lower than levels at this time a year ago but 8.4% above the five-year average for this time of year.

Market participants looked ahead to weekly storage data due on Thursday, which is expected to show a build in a range between 49 and 60 billion cubic feet in the week ended June 16.

That compares with a gain of 78 billion cubic feet in the preceding week, an increase of 62 billion a year earlier and a five-year average rise of 82 billion cubic feet.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.