Warmer Weather Forecasts Push Natural Gas to One-week Lows
U.S. natural gas futures extended its slide on Tuesday after starting the week off with heavy losses. The natural gas market gapped down on Monday on the back of forecasts showing cold weather receding in key regions in the U.S. during the next few weeks, which tends to dampen demand for the heating fuel.
Natural gas futures for March delivery fell as low as $3.172 per million British thermal units on Tuesday after having dropped more than 3% on Monday.
Investors will look head to weekly storage data scheduled on Thursday. The report is expected to point to draw in a range between 83 and 94 billion cubic feet in the week ended January 27 after showing a withdrawal of 119 billion cubic feet in the preceding week.
According to the U.S. Energy Information Administration, total natural gas in storage currently stands at 2.798 trillion cubic feet, 11.1% lower than levels at this time a year ago and less than 1% below the five-year average for this time of year.
Sell Stop at 3.190, Take profit 3.170, Stop loss at 3.200