Investing.com - Natural gas futures shot up on Tuesday as frigid temperatures across much of the U.S. were seen boosting demand for heating, while longer-range forecasts also supported the commodity.
On the New York Mercantile Exchange, natural gas futures for delivery in February traded at USD4.374 per million British thermal units during U.S. trading, up 1.57%. The commodity hit session high of USD4.429 and a low of USD4.301.
The February contract settled 0.05% higher on Monday to end at USD4.306 per million British thermal units. Natural gas futures were likely to find support at USD4.266 per million British thermal units, Monday's low, and resistance at USD4.447, the high from Dec. 31.
Updated weather forecasting models called for frigid temperatures across the eastern two-thirds of the U.S. through Jan. 11.
While a thawing trend may settle in shortly afterwards, cooler temperatures will return and hike demand for heating in the country's homes and businesses.
In its 8-14 day outlook, Natgasweather.com reported that a mild snap will end around Jan. 14, when a fresh blast of cold air will sweep across the country.
While the freeze may be less severe as the current weather system, temperatures may dip low enough to hike demand for heating once the mild snap ends.
The heating season from November through March is the peak demand period for U.S. gas consumption.
Meanwhile, U.S. supply levels remained in focus. Total U.S. natural gas storage stood at 3.071 trillion cubic feet as of last week, approximately 16% below last year's unusually high level and nearly 9% below the five-year average for this time of year.
Early withdrawal estimates for this week’s storage data range from 115 billion cubic feet to 160 billion cubic feet, compared to a drop of 126 billion cubic feet during the same week a year earlier. The five-year average change for the week is a decline of 131 billion cubic feet.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in February were up 0.52% and trading at USD93.92 a barrel, while heating oil for February delivery were up 0.84% and trading at USD2.9635 per gallon.
On the New York Mercantile Exchange, natural gas futures for delivery in February traded at USD4.374 per million British thermal units during U.S. trading, up 1.57%. The commodity hit session high of USD4.429 and a low of USD4.301.
The February contract settled 0.05% higher on Monday to end at USD4.306 per million British thermal units. Natural gas futures were likely to find support at USD4.266 per million British thermal units, Monday's low, and resistance at USD4.447, the high from Dec. 31.
Updated weather forecasting models called for frigid temperatures across the eastern two-thirds of the U.S. through Jan. 11.
While a thawing trend may settle in shortly afterwards, cooler temperatures will return and hike demand for heating in the country's homes and businesses.
In its 8-14 day outlook, Natgasweather.com reported that a mild snap will end around Jan. 14, when a fresh blast of cold air will sweep across the country.
While the freeze may be less severe as the current weather system, temperatures may dip low enough to hike demand for heating once the mild snap ends.
The heating season from November through March is the peak demand period for U.S. gas consumption.
Meanwhile, U.S. supply levels remained in focus. Total U.S. natural gas storage stood at 3.071 trillion cubic feet as of last week, approximately 16% below last year's unusually high level and nearly 9% below the five-year average for this time of year.
Early withdrawal estimates for this week’s storage data range from 115 billion cubic feet to 160 billion cubic feet, compared to a drop of 126 billion cubic feet during the same week a year earlier. The five-year average change for the week is a decline of 131 billion cubic feet.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in February were up 0.52% and trading at USD93.92 a barrel, while heating oil for February delivery were up 0.84% and trading at USD2.9635 per gallon.