NEW YORK: US natural gas futures fell for a third straight session on Tuesday, as mild weather forecasts and ample supplies kept pressure on the market.
Front-month gas futures for September delivery on the New York Mercantile Exchange fell 1percent to USD2.80 per million British thermal units at 10:03 a.m. EDT (1403 GMT). The contract fell on Monday to its lowest since November 4, 2024.
Analysts said prices remained under pressure with weather trends pointing to limited demand and little fundamental support for a sustained rebound.
Financial firm LSEG estimated 131 cooling degree days (CDDs) over the next two weeks, lower than the 142 CDDs estimated on Monday. The norm for this time of year is 135 CDDs. CDDs, which are used to estimate demand to cool homes and businesses, measure the number of degrees a day’s average temperature is above 65 degrees Fahrenheit (18 degrees Celsius).
“While Thursday’s EIA storage will likely offer a smaller than normal injection that would shrink the surplus by about 7 bcf according to our forecast, a major swing away from the current supply overhang of about 175 bcf appears unlikely when looking toward the end of next month,” said Jim Ritterbusch of Ritterbusch and Associates in Florida.
Last week, the US Energy Information Administration said energy firms added 13 billion cubic feet of gas to storage during the week ended August 15.
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