Investing.com - Natural gas futures rose to a one-week high on Monday before turning lower amid concerns that the arrival of spring will bring warmer temperatures throughout the U.S. and cut into demand for heating.
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.
On the New York Mercantile Exchange, natural gas futures for delivery in April rose to a session high of $4.733 per million British thermal units, the most since March 3.
Nymex natural gas prices last traded at $4.581 per million British thermal units during U.S. morning hours, down 0.8%, or 3.7 cents.
The April contract lost 0.94%, or 4.4 cents, on Friday to settle at $4.618 per million British thermal units.
Futures were likely to find support at $4.463 per million British thermal units, the low from March 3 and resistance at $4.736, the high from March 3.
Natural gas prices were higher earlier in the session as updated weather-forecasting models called for colder than normal temperatures that may boost demand for heating in the next three-to-five days.
Total U.S. natural gas storage stood at 1.196 trillion cubic feet as of last week, the lowest for this time of year since 2004, following a withdrawal of 152 billion cubic feet.
Natural gas rallied to a more than five-year high of $6.493 per million British thermal units on February 20 as frigid winter temperatures in the U.S. led households to burn a higher than normal amount of the fuel in furnaces to heat their homes.
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 April dropped 1.45%, or $1.51, to trade at $101.07 a barrel, while heating oil for April delivery slumped 1.35% to trade at $2.971 per gallon.