Photo by Timothy Newman on Unsplash

U.S. natural gas futures fell for a third consecutive session on Wednesday, hitting its lowest intraday level since late April, as new weather forecasts indicate a much cooler weather pattern unfolding across the Lower 48 for the beginning of August. 

Bloomberg cited Darrell Fletcher, managing director of commodities at Bannockburn Capital Markets, who noted that one of the most critical technical support levels for NatGas futures, around $3.20, is currently being tested.

As of late Wednesday afternoon, the level had been broken, pushing prices to their lowest levels since late April. According to Fletcher, the slide in prices is directly linked to softer demand expectations as cooler weather is forecast to sweep across parts of the Lower 48 late next week. 

One such forecast comes from Paul Dorian, a meteorologist with Arcfield Weather based in Valley Forge. He stated in an update for clients, "Unsettled weather returns this weekend and next week's pattern with northwest flow aloft could produce "mesoscale convective complexes"...a pleasant start to August is on the table." 

"By later next week, an upper-level trough of low pressure may intensify over the southeastern part of Canada, and it would likely feature a cooler-than-normal air mass. In fact, there are signs that this pattern could bring about a cooler-than-normal start to the month of August in the Mid-Atlantic region which begins next Friday," Dorian said. 
 

Take a look at New York City's two-week average temperature outlook... It's at or below 30-year seasonal norms.
 

Watch: Dorian Outlines Lower 48's August Outlook

Video Length: 00:21:10

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