Natural gas yesterday traded with the negative node and settled -2.11% down at 142.30 came under heavy selling pressure extending losses from the previous session as milder weather forecasts continued to weigh on future demand expectations for the fuel. Trading is expected to be subdued on Monday, as floor trading on the NYMEX will remain closed for the Memorial Day holiday. Natural gas prices lost more than 3% on Friday after forecasters from the CWG predicted normal or below-normal temperatures in the eastern half of the US from May 30 through June 3. Demand for natural gas tends to fluctuate in the summer based on hot weather and air conditioning use. Average or below-average summer temperatures decrease the need for gas-fired electricity to cool homes, dampening demand for natural gas. Despite the recent losses, sentiment on the fuel has improved in recent weeks. Prices are up more than 30% since hitting a decade-low of $1.9 on April 19, amid indications major natural gas producers were cutting back on production. Speculation that utility providers in the US were switching from pricier coal to cheaper natural gas provided further support over recent weeks. However, market sustained prices back above $2.5 and toward the $3 level likely would inspire some switching back to coal. For today's session market is looking to take support at 140.8, a break below could see a test of 139.2 and where as resistance is now likely to be seen at 144.2, a move above could see prices testing 146.
Nat. Gas trading range for the day is 139.23-146.03.
Natural gas dipped by 2% as milder weather forecasts continued to weigh on future demand expectations.
Industry group WD said cooling demand in the US could be 18% below normal from May 31 through June 4.
Speculation that utility providers in the US were switching from pricier coal to cheaper natural gas.
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