Forexpros – Natural gas futures declined on Tuesday, pulling back from a two-day high as mild autumn weather across most parts of the U.S. was likely to reduce demand for the fuel.

On the New York Mercantile Exchange, natural gas futures for October delivery traded at USD3.803 per million British thermal units during U.S. morning trade, retreating 0.87%.

It earlier fell as much as 1.25% to trade at a daily low of USD3.787 per million British thermal units.

Industry weather group MDA Federal said earlier that it expects seasonably normal weather across most parts of the U.S. west coast over the next six-to-ten days, while cooler temperatures were expected across the southern U.S. states.

The Commodity Weather Group also said that normal temperatures were forecast across much of the Midwest, East Coast and South in the coming days.

“We do not see any significant demand concerns this period,” the weather group said in a report.

Natural gas futures often reach a seasonal low in October, when mild weather reduces demand, before recovering in the winter, when heating-fuel use peaks.

Losses were limited after the U.S. National Hurricane Center said a westward-moving formation of “cloudiness and thunderstorms” has a 70% chance of becoming a tropical cyclone over the next 48 hours.

Energy traders track tropical weather in the event it disrupts production in the Gulf of Mexico.

Meanwhile, markets were looking forward to the U.S. Energy Information Administration’s weekly report on U.S. natural gas stockpiles for the week ended September 16 on Thursday.

Early injection estimates range from 85 billion cubic feet to 104 billion cubic feet.

Natural gas stockpiles rose by 78 billion cubic feet in the same week a year earlier, while the five-year average change is a buildup of 72 billion cubic feet.

Elsewhere on the Nymex, light sweet crude oil futures for delivery in November jumped 1.64% to trade at USD87.22 a barrel, while heating oil for October rose 1.15% to trade at USD2.978 per gallon.

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