-- US natural gas futures were mixed in after-hours trading on Tuesday as weather forecasts indicated colder-than-expected temperatures are set to cover large parts of the country into early May.
The front-month Henry Hub contract fell 1.83% to $2.679 per million British thermal units, while the continuous contract rose 0.16% to $2.554/MMBtu.
The June contract declined during Tuesday's regular session despite forecasts for cooler spring weather in the US that point to a potential increase in heating demand in early May, but the continuous contract was supported.
Barchart reported that the Commodity Weather Group expects below-average temperatures across much of the country through May 2.
Gelber & Associates said the cooler weather makes the shift supportive, but not strong enough on its own to generate a broad-based increase in demand, adding that cooling demand is still largely absent at this stage.
On the supply side, Gelber & Associates said production remains ample at 109.8 Bcf/d, while Canadian imports are elevated at 5.5 Bcf/d, indicating the colder forecast is meeting a market that still has sufficient product available.
Barchart, citing BNEF data, put output at 110.0 bcf/d, up 3.1% year-over-year, and said demand on Tuesday was 72.4 bcf/d, up 13.9% from a year earlier.
"Gas deliveries to LNG export plants are the other demand factor to watch, and they remain softer than the mid-April high as maintenance keeps some export demand from fully returning," Gelber said.
Estimated LNG net flows to US export terminals on Tuesday were 19.3 Bcf/d, down 3.9% week-over-week, according to BNEF.