Natural gas prices fell for a fourth straight day to a thirteen-week low as mild weather forecasts dampened demand expectations.
On the New York Mercantile Exchange, natural gas futures for July delivery traded at $3.773 per million British thermal units at 14:44 GMT, down 0.72% on the day. Prices varied between the thirteen-week low of $3.755 and days high at $3.803 per million British thermal units.
Despite the major retreat, gas will most likely be supported by increased demand this month. Although forecasts showed a milder temperatures throughout the U.S., June weather is still expected to be above-the-normal warmer. Natural gas demand tends to surge in the summer months because higher temperatures increase the need for gas-powered electricity to power air conditioning.
Prices were also pressured by last weeks Natural Gas Storage Indicator figures. According to the Energy Information Administrations weekly report last Thursday, natural gas inventories gained 111 billion cubic feet to 2.252 trillion in the week ending May 31, compared to an 88 billion increase in the preceding week and also above the five-year average surge by 92 billion. During the same week last year, natural gas storage gained 72 billion cubic feet. According to preliminary estimates, this weeks injections should be between 90 and 112 billion cubic feet, compared to 66 billion the same time last year and a five-year-average of 84 billion increase.
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