Investing.com - U.S. natural gas prices pushed higher on Tuesday, as market players continued to assess the outlook for U.S. demand and supply levels.
Natural gas for delivery in October on the New York Mercantile Exchange tacked on 2.2 cents, or 0.84%, to trade at $2.710 per million British thermal units during U.S. morning hours. A day earlier, gas futures lost 2.6 cents, or 0.96%.
Updated weather forecasting models released Tuesday showed that most parts of the southern and western U.S. will be engulfed by hot temperatures.
However, cooler weather was expected across most parts of the Great Lakes, Northeast and Midwest-regions as the week progresses.
Demand for natural gas tends to fluctuate in the summer based on hot weather and air conditioning use. Natural gas accounts for about a quarter of U.S. electricity generation.
According to the U.S. Energy Information Administration, natural gas supplies totaled 3.099 trillion cubic feet as of last week, 18.3% higher than during the same week a year earlier and 2.9% above the five-year average for this time of year.
Last spring, supplies were 55% below the five-year average, indicating producers have made up for all of last winter’s unusually strong demand.
Data last week showed that natural gas storage rose by 69 billion cubic feet last week, above expectations for an increase of 59 billion.
Supplies rose by 77 billion cubic feet in the same week last year, while the five-year average change is an increase of 61 billion cubic feet.
The EIA's next storage report slated for release on Thursday, September 3 is expected to show a build of approximately 87 billion cubic feet for the week ending August 27.
That compares with builds of 79 billion cubic feet in the same week last year, while the five-year average change for the week is an increase of 60 billion cubic feet.
Elsewhere on the Nymex, crude oil for delivery in October lost $2.03, or 4.13%, to trade at $47.17 a barrel, while heating oil for October delivery tumbled 3.72% to trade at $1.637 per gallon.