Investing.com - U.S. natural gas futures ended Friday’s session close to a seven-week low, amid concerns that the arrival of spring will bring warmer temperatures throughout the U.S. and cut into demand for heating.
On the New York Mercantile Exchange, natural gas futures for delivery in April fell to a session low of $.4.341 per million British thermal units, before recovering to settle at $4.425, up 0.96%, or 4.2 cents.
The April contract lost 2.38%, or 10.7 cents, on Thursday to settle at $4.383 per million British thermal units.
Futures were likely to find support at $4.341 per million British thermal units, the low from March 14 and resistance at $4.631, the high from March 12.
On the week, Nymex natural gas prices lost 4.17%, or 19.3 cents.
Prices slumped on Thursday after weekly supply data showed that natural gas storage in the U.S. fell by 195 billion cubic feet, broadly in line with expectations for a decline of 196 billion cubic feet.
Total U.S. natural gas storage stood at 1.001 trillion cubic feet, the lowest for this time of year since 2003.
Meanwhile, updated weather-forecasting models called for above-normal temperatures across many densely populated areas in the U.S. in the next three to five days.
Spring and fall see the weakest demand for natural gas in the U.S, as the absence of extreme temperatures curbs demand for heating and air conditioning.
The heating season from November through March is the peak demand period for U.S. gas consumption. Approximately 52% of U.S. households use natural gas for heating, according to the Energy Department.
Data from the Commodities Futures Trading Commission released Friday showed that hedge funds and money managers reduced their bullish bets in natural gas futures in the week ending March 11.
Net longs totaled 149,267 contracts, down 1.9% from net longs of 152,182 in the previous week.
Elsewhere in the energy complex, light sweet crude oil futures for April delivery settled at $98.89 a barrel by close of trade on Friday, down 3.59% on the week.
Meanwhile, heating oil for April delivery lost 1.3% on the week to settle at $2.980 per gallon by close of trade Friday.