Forexpros – Natural gas futures declined on Tuesday, easing off a two-week high as Spring officially arrived in the Northern Hemisphere and amid speculation this week’s inventory data will show the first storage build of the season.

On the New York Mercantile Exchange, natural gas futures for delivery in April traded at USD2.334 per million British thermal units during U.S. morning trade, shedding 0.7%.

It earlier fell by as much as 1.1% to trade at a session low of USD2.318 per million British thermal units.

Natural gas prices edged higher on Monday, rising to USD2.390, the highest since March 6 as some bargain buying and short covering provided support.

But prices resumed their downtrend on Tuesday with the official start of spring in the U.S. and amid indications demand for the heating fuel will remain weak in the near-term.

Latest forecasts from the National Oceanic and Atmospheric Administration show above-normal temperatures covering most of the U.S. into early April, capping off an abysmal heating season for the U.S. natural-gas market.

According to the NOAA, temperatures in the continental U.S. in December through February were the warmest since 2000.

The agency said that the number of heating-degree days, a measure of energy demand, was 11% below the 30-year average for the October to February period.

Without a drop in temperatures, analysts say that this week’s report could show the first injection of natural gas for the year.

Early withdrawal estimates for Thursday’s storage data range from a build of 7 billion cubic feet to 16 billion cubic feet, compared to the five-year average decline for the week of 17 billion.

Last year, in the March 16 report, the EIA reported gas withdrawals of 20 billion cubic feet, followed by a 7 billion cubic feet injection the following week.

Prices fell to USD2.208 per million British thermal units on Tuesday, March 13, the lowest since February 2002, amid forecasts for mild March weather and lingering concerns over record high U.S. inventory levels.

Some market analysts expect prices to drop even further and test USD2.00 per million British thermal units amid expectations U.S. gas inventories will end the winter at a record high 2.2 trillion cubic feet, well above the previous high of 2.148 trillion set in 1983.

Total U.S. natural gas storage stood at 2.369 trillion cubic feet as of last week, 45% above year-ago levels and 52% higher than the five-year average of 1.562 trillion cubic feet.

Natural gas prices have plunged almost 10% since the beginning of March and are down nearly 21% since the start of 2012 as market sentiment has been dominated by concerns over elevated U.S. storage levels and mild winter weather that has limited demand for the fuel.

Elsewhere on the NYMEX, light sweet crude oil futures for delivery in May tumbled 2% to trade at USD106.38 a barrel, while heating oil for April delivery dipped 0.85% to trade at USD3.233 per gallon.

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