🔺 What to do when markets are at an all-time high? Find smart bargains, like these.See Undervalued Stocks

Natural gas futures surge 6% as forecasts turn chilly

Published 01/14/2015, 09:52 AM
Natural gas futures surge 6% on demand hopes
CL
-
NG
-
NYF
-

Investing.com - U.S. natural gas prices soared on Wednesday, as investors reacted to a cooler shift in weather patterns.

On the New York Mercantile Exchange, natural gas for delivery in February hit a session high of $3.118 per million British thermal units, the most since January 5, before trading at $3.107 during U.S. morning hours, up 16.4 cents, or 5.57%.

A day earlier, natural gas rallied 14.8 cents, or 5.3% to settle at $2.943.

Futures were likely to find support at $2.795 per million British thermal units, the low from January 13, and resistance at $3.176, the high from January 5.

Updated weather forecasting models indicated that temperatures over the central U.S. would not be as warm as previously predicted, boosting near-term demand expectations for the heating fuel.

Bullish speculators are betting on the cooler weather to increase winter-heating demand for the fuel.

The heating season from November through March is the peak demand period for U.S. gas consumption.

Meanwhile, the U.S. Energy Information Administration's weekly storage report slated for release on Thursday is expected to show a decline of 192 billion cubic feet for the week ending January 9.

Inventories fell by 268 billion cubic feet in the same week a year earlier, while the five-year average change is a drop of 190 billion cubic feet.

Total U.S. natural gas storage stood at 3.089 trillion cubic feet, 7.4% above year-ago levels and 2.1% below the five-year average for this time of year.

Elsewhere on the Nymex, crude oil for delivery in February inched up 63 cents, or 1.37%, to trade at $46.52 a barrel, while heating oil for February delivery slumped 0.03% to trade at $1.632 per gallon.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.