Investing.com - U.S. natural gas prices fluctuated between gains and losses on Wednesday, as market participants looked ahead to fresh weekly information on U.S. gas inventories to gauge the strength of demand for the heating fuel.
On the New York Mercantile Exchange, natural gas for delivery in April shed 0.4 cents, or 0.14%, to trade at $2.885 per million British thermal units during U.S. morning hours. Prices traded in a range between $2.870 and $2.914.
A day earlier, natural gas for delivery in April shed 0.4 cents, or 0.14%, to settle at $2.889.
Futures were likely to find support at $2.839 per million British thermal units, the low from February 24, and resistance at $3.045, the high from February 23.
The Energy Information Administration's storage report slated for release on Thursday is expected to show a withdrawal of approximately 230 billion cubic feet for the week ending February 20, as a recent cold blast stoked heating demand.
The five-year average change for the week is a decline of 131 billion cubic feet, while supplies fell by 117 billion the same time last year.
Prices of the heating fuel have been well supported in recent sessions as forecasts for freezing weather across large parts of the U.S. boosted expectations for much higher heating demand.
Bullish speculators are betting on the frigid weather boosting winter demand for the heating fuel.
The heating season from November through March is the peak demand period for U.S. gas consumption.
Despite recent gains, futures remain vulnerable to losses in the near-term amid speculation supplies are more than ample to meet demand.
Total U.S. natural gas storage stood at 2.157 trillion cubic feet as of last week, 2.8% above the five-year average for this time of year.
Last spring, supplies were 55% below the five-year average, indicating producers have more than made up for last winter’s unusually strong demand.
Natural gas prices are up almost 11% since hitting a recent bottom on February 6. However, futures are still down nearly 35% since mid-November, as an unusually mild start to winter limited demand while production soared.
Elsewhere on the Nymex, crude oil for delivery in April inched up 41 cents, or 0.84%, to trade at $49.69 a barrel, while heating oil for April delivery rose 0.76% to trade at $1.888 per gallon.