Futures Pros – Natural gas futures were down for a third day on Tuesday, amid indications of decreased demand as forecasts showed mild temperatures in key gas-heating areas in the U.S. next week.
On the New York Mercantile Exchange, natural gas futures for May delivery traded at USD4.265 per million British thermal units during U.S. morning trade, dipping 0.25%.
It earlier fell to a daily low of USD4.245 per million British thermal units.
Earlier in the day, the Commodity Weather Group said that it expected warmer-than-normal temperatures across most of the U.S. Southwest through much of the East Coast through mid-April.
According to the weather group, the recent cold front that had given the market a boost was expected to subside in the coming days, likely signaling an end to the late season burst of gas-heating demand.
Weather service provider AccuWeather said that New York was forecast to have a high temperature of 66 degrees Fahrenheit (19 Celsius) on April 11, seven degrees above average.
Meanwhile, industry group Weather Derivatives said that U.S. heating demand from April 7 through April 12 was expected to be 19% below normal due to above average weather in key U.S. gas-heating areas.
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.
Elsewhere, light sweet crude oil futures for delivery in May edged 0.05% lower to trade at USD108.24 a barrel, while heating oil for May delivery added 0.41% to trade at USD3.176 per gallon during U.S. morning trade.