Investing.com - Natural gas futures shot up on Tuesday after updated weather-forecasting models called for seasonably warm summertime temperatures to settle in over much of the U.S., which should hike demand for air conditioning.
On the New York Mercantile Exchange, natural gas futures for delivery in September traded at $3.890 per million British thermal units during U.S. trading, up 1.45%. The commodity hit a session low of $3.827, and a high of $3.913.
The September contract settled up 0.95% on Monday to end at $3.834 per million British thermal units.
Natural gas futures were likely to find support at $3.761 per million British thermal units, Monday's low, and resistance at $4.173, the high from July 14.
Forecasts for seasonably warm temperatures to edge out a recent cool snap sent natural gas prices rising on Tuesday due to expectations that demand for the commodity will rise as households crank up their air conditioning.
Prices have been under pressure in recent weeks as unseasonably cool summer temperatures in much of the U.S. limited demand for the fuel.
Supply data due out this week remained in focus as well.
The U.S. Energy Information Administration said in its weekly report on July 31 that natural gas storage in the U.S. rose by 88 billion cubic feet during the week before then.
The number was below expectations for an increase of 93 billion cubic feet, but higher than the five-year average change for the week of an increase of 42 billion cubic feet.
Total U.S. natural gas storage stood at 2.307 trillion cubic feet as of last week, narrowing the deficit to the five-year average to 21.7% from 23.5% a week earlier and down from a record 54.7% at the end of March.
Analysts expect this week's report due out on Thursday to reveal a build of 87 billion cubic feet for the week ending August 1.
Inventories rose by 90 billion cubic feet in the same week a year earlier, while the five-year average change is a build of 49 billion cubic feet.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in September were down 0.93% at $97.38 a barrel, while heating oil for September delivery were down 0.80% at $2.8483 per gallon.