Investing.com - U.S. natural gas prices traded near a two-week low on Monday, as extended forecasts called for warmer weather across the majority of the U.S. in the second week of March.
On the New York Mercantile Exchange, natural gas for delivery in April dipped 0.5 cents, or 0.2%, to trade at $2.729 per million British thermal units during U.S. morning hours. Prices held in a range between $2.692 and $2.744.
Futures were likely to find support at $2.684 per million British thermal units, the low from February 27, and resistance at $2.888, the high from February 26.
Bearish speculators are betting on the warm weather reducing late-winter demand for the heating fuel.
The heating season from November through March is the peak demand period for U.S. gas consumption.
On Friday, natural gas for delivery in April fell to $2.684, the lowest level since February 13, before ending at $2.734 by close of trade, up 3.7 cents, or 1.37%.
Despite Friday's gains, Nymex natural gas prices tumbled 27.5 cents, or 8.8%, last week, as ongoing concerns over ample supplies weighed.
Total U.S. natural gas storage stood at 1.938 trillion cubic feet as of last week, 1.5% below 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.
Futures are down almost 40% since mid-November as an unusually mild start to winter limited demand while production soared.
The Energy Information Administration's next storage report slated for release on March 5 is expected to show a withdrawal of approximately 220 billion cubic feet for the week ending February 27, as a recent cold blast stoked heating demand.
The five-year average change for the week is a decline of 116 billion cubic feet, while supplies fell by 189 billion the same time last year.
Elsewhere on the Nymex, crude oil for delivery in April shed 59 cents, or 1.19%, to trade at $49.17 a barrel, while heating oil for April delivery dropped 1.98% to trade at $1.934 per gallon.