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Natural Gas Edges Up Despite Cool Long-Term Forecasts

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Natural gas futures edged higher early Tuesday even as long-term forecasts expect cooler weather is on the way for big eastern markets, cutting into cooling demand.

Gas for July delivery was last seen up $0.01 to US$3.16 per million British thermal units.

Long-term forecasts from the National Weather Service expect temperatures in the Northeast and Upper Midwest to be cooler than seasonal over its six to 14 day forecast, easing demand for air conditioning.

"After bouncing away from support yesterday we are seeing some potential shorts trying to cover but with resistance at $3.18 we are likely limited on how far we can push with such bearish weather on the maps," Gary Cunningham, Director of Market Research at Tradition Energy wrote.

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