$NGQ6

Natural Gas Falls Despite Hot Weather US Forecasts as Supply Stays High

Natural gas prices traded lower early on Monday despite forecasts that see hot weather on the way for most U.S. states.In its first day as the active contract, gas for August delivery was last seen down US$0.08 to US$3.20 per million British thermal units.The drop comes even as long-term forecasts from the National Weather Service expect all states to see hotter than seasonal temperatures over its eight-to-14 day outlook, boosting demand for electricity to power air conditioning.However supply remains robust, checking prices. The Energy Information Administration last week reported inventories of the fuel stood at 2.84-trillion cubic feet, 5.7% above the five-year average.