Investing.com - Natural gas futures rose above the key USD2.00-level in early trade on Monday, as some technical buying supported prices, though further downside was seen in the near-term.
On the New York Mercantile Exchange, natural gas futures for delivery in May traded at USD2.002 per million British thermal units during U.S. morning trade, jumping 1.03%.
It earlier rose by as much as 1.75% to trade at a session high of USD2.026 per million British thermal units. Prices dropped to USD1.960 per million British thermal units on Friday, the lowest since January 2002.
Natural gas futures have been hitting a string of fresh 10-year lows over the past two weeks, as market sentiment has been dominated by ongoing concerns over waning demand and elevated U.S. storage and production levels.
U.S. gas futures lost nearly 5% last week, the fourth consecutive weekly drop. Prices are the lowest for this time of year since 1997.
But prices regained strength on Monday, moving off Friday’s ten-year low as traders closed out bets on lower prices after futures moved into oversold territory.
Natural gas prices have plunged almost 24% since the beginning of March and are down nearly 33% since the start of 2012.
Weekly storage data from the U.S. released last week showed that natural gas storage in the U.S. rose by 8 billion cubic feet last week, the fourth consecutive seasonal injection of natural gas for the year.
Total U.S. natural gas storage stood at 2.487 trillion cubic feet as of last week, 56% above year-ago levels and almost 59% higher than the five-year average for this time of year.
Natural gas traders expect the near-term downtrend in prices to continue amid indications demand for the heating fuel will remain weak in the near-term.
The U.S. gas market is entering the so-called shoulder season. Gas use typically hits a seasonal low with spring's mild temperatures, before warmer weather increases demand for gas-fired electricity generation to power air conditioning.
Early injection estimates for this week’s storage data range from 19 billion cubic feet to 41 billion cubic feet, compared to last year's build of 42 billion cubic feet. The five-year average change for the week is an increase of 26 billion cubic feet.
Some market participants are now expecting prices to fall to USD1.85 per million British thermal in the near-term and eventually test the all-time low of USD1.02 hit in 1992.
U.S. gas inventories ended the winter at a record high 2.48 trillion cubic feet, about 60% above normal and well above the previous March 31 high of 2.148 trillion set in 1983.
The net withdrawal from storage in January was 545 billion cubic feet, the lowest for the month since 2006, while the U.S. National Oceanic and Atmospheric Administration said that last month was the warmest March ever recorded in the U.S.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in June fell 0.55% to trade at USD102.75 a barrel, while heating oil for May delivery dropped 1.35% to trade at USD3.131 per gallon.
On the New York Mercantile Exchange, natural gas futures for delivery in May traded at USD2.002 per million British thermal units during U.S. morning trade, jumping 1.03%.
It earlier rose by as much as 1.75% to trade at a session high of USD2.026 per million British thermal units. Prices dropped to USD1.960 per million British thermal units on Friday, the lowest since January 2002.
Natural gas futures have been hitting a string of fresh 10-year lows over the past two weeks, as market sentiment has been dominated by ongoing concerns over waning demand and elevated U.S. storage and production levels.
U.S. gas futures lost nearly 5% last week, the fourth consecutive weekly drop. Prices are the lowest for this time of year since 1997.
But prices regained strength on Monday, moving off Friday’s ten-year low as traders closed out bets on lower prices after futures moved into oversold territory.
Natural gas prices have plunged almost 24% since the beginning of March and are down nearly 33% since the start of 2012.
Weekly storage data from the U.S. released last week showed that natural gas storage in the U.S. rose by 8 billion cubic feet last week, the fourth consecutive seasonal injection of natural gas for the year.
Total U.S. natural gas storage stood at 2.487 trillion cubic feet as of last week, 56% above year-ago levels and almost 59% higher than the five-year average for this time of year.
Natural gas traders expect the near-term downtrend in prices to continue amid indications demand for the heating fuel will remain weak in the near-term.
The U.S. gas market is entering the so-called shoulder season. Gas use typically hits a seasonal low with spring's mild temperatures, before warmer weather increases demand for gas-fired electricity generation to power air conditioning.
Early injection estimates for this week’s storage data range from 19 billion cubic feet to 41 billion cubic feet, compared to last year's build of 42 billion cubic feet. The five-year average change for the week is an increase of 26 billion cubic feet.
Some market participants are now expecting prices to fall to USD1.85 per million British thermal in the near-term and eventually test the all-time low of USD1.02 hit in 1992.
U.S. gas inventories ended the winter at a record high 2.48 trillion cubic feet, about 60% above normal and well above the previous March 31 high of 2.148 trillion set in 1983.
The net withdrawal from storage in January was 545 billion cubic feet, the lowest for the month since 2006, while the U.S. National Oceanic and Atmospheric Administration said that last month was the warmest March ever recorded in the U.S.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in June fell 0.55% to trade at USD102.75 a barrel, while heating oil for May delivery dropped 1.35% to trade at USD3.131 per gallon.