Natural gas gains on warm weather forecasts

Natural gas gained for a second consecutive day as weather forecasting models indicated on Sunday above-normal temperatures throughout the next ten days. Gas prices tend to rise during the summer season as increased electricity demand to power air-conditioning calls for more supply of the fuel, which is used for a quarter of the U.S. electricity generation.

On the New York Mercantile Exchange, natural gas futures for July delivery traded at $3.90 per million British thermal units, marking a 0.63% gain on the day. Prices of the fuel ranged between days high of $3.914 and low at $3.874 per mBtu. Natural gas rose more than 3% on Monday.

Meanwhile, market players are looking ahead at the Energy Information Administrations weekly Natural Gas Storage Indicator report, scheduled for Thursday. In its report last week, the EIA said natural gas storage rose less than expected during the week ending June 7. Natural gas stockpiles jumped by 95 billion cubic feet to 2 347 billion according to the Energy Information Administration, compared to a 111 billion gain last week, when natural gas inventories reached at 2 252 billion cubic feet.

During the same week last year, natural gas stockpiles were 20% higher, totaling 2 934 billion cubic feet. Last week’s reading is also 2.4% lower compared to the five-year average of 2 405 billion cubic feet.

Elsewhere on the fuel market, WTI crude for August delivery traded lower on the day, standing at $97.83 per barrel at 8:20 GMT. It ranged between daily high and low at $1 385.35 and $1 376.75 a barrel respectively.

Brent oil August futures stood at $105.39 per barrel at 8:21 GMT, down 0.09% on the day. The European benchmark varied between daily ranges of $105.78 and $105.28 a barrel. Oil prices were moved during the past couple of days by speculations on Feds monetary stimulus scale back, tension in Syria, presidential elections in Iran and global demand outlook with U.S. crude reserves in focus.