On Tuesday, U.S. natural gas futures dipped, adding up losses from the previous session as warmer than normal weather in key gas consuming regions in the U.S. reduced demand anticipations for the heating fuel.
Delivery of Natural gas for December on the New York Mercantile Exchange decline by as much as 5 percent to a session low of $2.867 per million British thermal units.
Previously at $2.892 by 10:40AM ET (14:40GMT), down 13.4 cents, or 4.4%. A day before, they lost 7.9 cents, or 2.54 percent.
Updated weather forecasting models displayed that high pressure weather systems will control over the central and southern U.S. this week, resulting in much warmer than normal conditions.
Generally, demand for natural gas will be much lighter than usual with the lack of subfreezing temperatures through the eastern U.S. and the Great Lakes-region.
Temporarily, market players anticipated weekly supply data scheduled on Thursday, which is anticipated to present a build in a range between 49 and 59 billion cubic feet in the week ended October 28.
That compares with an increase of 73 billion cubic feet in the preceding week, 56 billion a year before and a five year average build about 63 billion cubic feet.
Over-all natural gas in storage presently stands at 3.909 trillion cubic feet, according to the U.S. Energy Information Administration, 1.3% higher than levels at this time a year ago and 4.7% beyond the five-year average for this time of year.
Lately, Natural gas futures have been under heavy selling pressure as warmer than average weather in key gas consuming regions in the U.S. ignited assumption that a mild winter will limit demand for the heating fuel and leave a surplus of it in storage, influencing on prices the approaching year.
Gas futures frequently touch a seasonal low in October, when mild weather decreases demand, before recovering in the winter, when heating-fuel use peaks.
On Additional News
On Wednesday, Gold drifted higher in Asia ahead of a Fed policy review expected to hold perfectly,however, also added insight into probabilities for a widely expected rate hike in December.
Delivery of gold for December on the Comex division of the NYMEX increase 0.17% to $1,290.25 a troy ounce.
Also on the Comex, delivery of silver futures for December fell 0.14% to $18.392 a troy ounce. Copper futures increase 0.04% to 2.233 a pound.
The U.S. central bank is not anticipated to increase interest rates, however, could indicate its intent to hike in December during indication the economy is picking up steam. Traders are lately pricing in a less than 10% possibility of a rate hike this week, according to sources. For December, odds raised at 77.4%.
Suddenly, on Tuesday, gold prices increased to a one month peak during North America’s session, after a new poll presented that enthusiasm for Hillary Clinton has ebbed since the renewal of the FBI’s email investigation ahead of the approaching U.S. presidential election.
An ABC/Washington Post tracking survey released earlier gave Trump 46% support from likely voters, to Clinton’s 45%. Clinton was ahead by 12 points a week before.
Markets were anxious by news last Friday that the FBI is scheduling to review additional emails related to Democratic presidential candidate Hillary Clinton’s private server, just over a week prior to the election.
The revelation could harm the probabilities of the Democrat candidate, stimulating worries about a surprise election result.
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