Natural gas dropped 1.35% today on the New York Mercantile Exchange and traded at $4,107 per million British thermal units. Futures came under selling pressure as the June contract expires at the end of Wednesdays trading session. Earlier it fell by 1.5% and traded at the lowest price since May 21 at $4,102. Contract expiration often leads to volatile sessions as traders look to reposition or close positions.
The July contract fell 1.7% and traded at $4.154 per million British thermal units.
According to weather forecasts, temperatures in the U.S. should remain above the normal. Natural gas demand tends to surge in the summer months because higher temperatures increase the need for gas-powered electricity to power air conditioning.
Market players are awaiting the U.S. Natural Gas Storage Indicator, scheduled for Thursday. Early estimates show underground reserves should have increased in range between 80 and 103 billion cubic feet, compared to 72 billion cubic feet during the same week last year.
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
