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MTECHTIPS:- U.S. natural gas futures bounce off 11-week low in early trade

MTECHTIPS:- U.S. natural gas futures bounce off 11-week low in early trade

U.S. natural gas prices rose on Tuesday, one day after falling to the lowest level in almost three months, 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 2.5 cents, or 0.92%, to trade at $2.681 per million British thermal units during U.S. morning hours. A day earlier, natural gas prices fell to $2.641, the weakest level since June 8, before ending at $2.656, down 4.1 cents, or 1.52%. 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 storage stood at 3.030 trillion cubic feet as of last week, 19.2% higher than during the same week a year earlier and 2.7% 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 in the U.S. rose by 53 billion cubic feet, below expectations for an increase of 58 billion.

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