NYMEX July natural gas futures were broadly steady in early Wednesday trading, ticking up slightly after Tuesday’s fall and nearly back to the $2.90/MMBtu mark after weather-related losses over previous trading sessions.
The NYMEX July futures contract was seen trading at $2.899/MMBtu at 0700 EDT (1100 GMT), 0.9 cent higher than Tuesday’s settlement of $2.89/MMBtu.
The contract ranged between $2.887/MMBtu and $2.912/MMBtu, easing lower as the bearish sentiment continued, after the contract lost 4 cents Tuesday on the back of a mixed weather outlook.
In its latest forecast, US National Weather Service showed above-average temperatures over most of the US in its 6-10 day outlook, while below-average conditions were expected in the Northwest of the country.
Milder temperatures could drive demand further down, with total US demand falling 600 MMcf to 70.4 Bcf Tuesday.