Investing.com - Natural gas futures rallied to a six-month high on Monday, as updated weather forecasting models pointed to freezing temperatures across most parts of the U.S.
On the New York Mercantile Exchange, natural gas futures for delivery in January traded at USD4.193 per million British thermal units during U.S. morning trade, up 1.9%. Nymex January gas futures rose to a session high of USD4.212 per million British thermal units earlier, the strongest level since May 29.
The January contract settled 0.44% lower on Friday to settle at USD4.114 per million British thermal units.
Natural gas futures were likely to find support at USD4.103 per million British thermal units, the low from December 6 and resistance at USD4.228, the high from May 29.
Updated weather forecasting models called for severe cold weather across most parts of the U.S. during the next three-to-five days, with continued cold across most of the nation expected in the next six- to-ten days.
Bullish speculators are betting that colder weather will increase demand for the heating fuel. The heating season from November through March is the peak demand period for U.S. gas consumption.
Meanwhile, U.S. supply levels remained in focus. Total U.S. natural gas storage stood at 3.614 trillion cubic feet as last week, more than 5% below last year's unusually high level and nearly 3% below the five-year average for this time of year.
Early estimates for next week’s storage data range from a draw of 75 billion cubic feet to 86 billion cubic feet, compared to a drop of 8 billion cubic feet during the same week a year earlier.
The five-year average change for the week is a decline of 76 billion cubic feet.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in January shed 0.2% to trade at USD97.45 a barrel, while heating oil for January delivery fell 0.55% to trade at USD3.039 per gallon.
On the New York Mercantile Exchange, natural gas futures for delivery in January traded at USD4.193 per million British thermal units during U.S. morning trade, up 1.9%. Nymex January gas futures rose to a session high of USD4.212 per million British thermal units earlier, the strongest level since May 29.
The January contract settled 0.44% lower on Friday to settle at USD4.114 per million British thermal units.
Natural gas futures were likely to find support at USD4.103 per million British thermal units, the low from December 6 and resistance at USD4.228, the high from May 29.
Updated weather forecasting models called for severe cold weather across most parts of the U.S. during the next three-to-five days, with continued cold across most of the nation expected in the next six- to-ten days.
Bullish speculators are betting that colder weather will increase demand for the heating fuel. The heating season from November through March is the peak demand period for U.S. gas consumption.
Meanwhile, U.S. supply levels remained in focus. Total U.S. natural gas storage stood at 3.614 trillion cubic feet as last week, more than 5% below last year's unusually high level and nearly 3% below the five-year average for this time of year.
Early estimates for next week’s storage data range from a draw of 75 billion cubic feet to 86 billion cubic feet, compared to a drop of 8 billion cubic feet during the same week a year earlier.
The five-year average change for the week is a decline of 76 billion cubic feet.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in January shed 0.2% to trade at USD97.45 a barrel, while heating oil for January delivery fell 0.55% to trade at USD3.039 per gallon.