U.S. natural gas futures traded near the lowest level since November on Monday, as meteorologists continued to predict mild summer weather across much of the U.S.
On the New York Mercantile Exchange, natural gas for delivery in September fell to a session low of $3.741 per million British thermal units, the weakest level since November 26, before turning higher to last trade at $3.811 during U.S. morning hours, up 0.63%, or 2.4 cents.
Natural gas futures ended Friday’s session down 1.64%, or 6.3 cents, to settle at $3.787. Futures were likely to find support at $3.682 per million British thermal units, the low from November 22 and resistance at $3.868, the high from July 25.
Natural gas prices have been under heavy selling pressure in recent weeks as unseasonably cool summer temperatures in much of the U.S. limited demand for the fuel.
Nymex natural gas prices lost 4.3%, or 17.0 cents, last week, the sixth consecutive weekly decline.
Demand for natural gas tends to fluctuate in the summer based on hot weather and air conditioning use.
Meanwhile, the U.S. Energy Information Administration said in its weekly report on July 24 that natural gas storage in the U.S. rose by 90 billion cubic feet last week. The five-year average change for the week is an increase of 46 billion cubic feet.
Total U.S. natural gas storage stood at 2.219 trillion cubic feet as of last week, narrowing the deficit to the five-year average to 23.5%, down from a record 54.7% at the end of March.
Wall Street investment bank Goldman Sachs said mild weather and a record pace of inventory gains may push prices lower in the next three months.
Elsewhere on the Nymex, crude oil for delivery in September slumped 0.8%, or 81 cents, to trade at $101.28 a barrel, while heating oil for September delivery dipped 0.66% to trade at $2.904 per gallon.