Natural gas prices weakened for a second day on Tuesday even as forecasts see hot weather on the way for most states, boosting cooling demand.
Gas for July delivery was last seen down US$0.06 to US$3.12 per million British thermal units, continuing to ease off the four-month highs touched last week.
The drop comes even as long-term forecasts from the National Weather Service expect nearly all states to be warmer than seasonal over its six to 14 day outlook, raising demand for gas-fired power for air conditioning.
Still, the price of the fuel looks to be now trading within technical ranges following last week's rally.
"There is fundamental support for Jul/Aug gas at about $3.15 so look for the market to remain in the $3.10 to $3.20 range with some upside risk should we see more heat develop for the second half of June," Gary Cunningham, Director of Market Research at Tradition Energy, wrote.