Investing.com - Natural gas futures rallied more than 3% on Monday, as expectations for a boost in late-winter heating demand lifted prices from the lowest level in seven-weeks.
On the New York Mercantile Exchange, natural gas futures for delivery in April rose to a session high of $4.585 per million British thermal units, the most since March 12.
Nymex natural gas prices last traded at $4.547 per million British thermal units during U.S. morning hours, up 2.75%, or 12.1 cents.
The April contract picked up 0.96%, or 4.2 cents, on Friday to settle at $4.425 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 $4.626, the high from March 12.
Updated weather-forecasting models called for colder than normal temperatures that may boost demand for heating from March 22 through March 31 in the U.S. Northeast and Midwest.
According to AccuWeather.com, temperatures in New York will fall to as much as -2 degrees Fahrenheit on March 24, 5 degrees below average. Readings in Chicago will bottom at -6 degrees Fahrenheit, compared to the average of 1 degree, while Detroit will see a low of -6 degrees, 6 below usual.
Total U.S. natural gas storage stood at 1.001 trillion cubic feet, the lowest for this time of year since 2003.
Prices slumped to a seven-week low of $4.341 per million British thermal units on Friday, amid concerns that the arrival of spring will bring warmer temperatures throughout the U.S. and cut into demand for heating.
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.
Elsewhere on the Nymex, light sweet crude oil futures for delivery in May dropped 0.43%, or 42 cents, to trade at $98.14 a barrel, while heating oil for April delivery slumped 0.75% to trade at $2.920 per gallon.