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Natural Gas gains as weather models point to cooling temperatures

Published 02/18/2013, 12:49 PM
Updated 02/18/2013, 12:50 PM
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Investing.com - Natural gas futures rose on Monday after recent weather forecasting models predicted cooler temperatures to return in the coming days after a short-lived warming trend for parts of the eastern U.S. wanes.

On the New York Mercantile Exchange, natural gas futures for delivery in March traded at USD3.174 per million British thermal units, up 0.65%.

The commodity hit a session low of USD3.135 and a high of USD3.175.

A recent blast of cold air may will give way to warmer temperatures, but not for long.

MDA Weather Services said Friday that its one- to five-day outlook called for normal or below-normal temperatures over most of the country.

The latest U.S. National Weather Service six- to 10-day outlook also predicted mostly normal or below-normal temperatures for most of the country throughout the period.

Natural gas futures are very sensitive to weather reports in the U.S. winter.

The U.S. heating season, which runs from November through March, sees peak demand for gas.

About half of U.S. households use gas for heating purposes, according to Energy Department data.

The weather forecasts sent prices gaining in quiet trading on Monday after bearish supply data bruised the commodity's performance late last week.

The U.S. Energy Information Administration said in its weekly report on Thursday that natural gas storage in the U.S. in the week ended Feb. 8 fell by 157 billion cubic feet, below expectations for a drop of 162 billion cubic feet.

Inventories fell by 113 billion cubic feet in the same week a year earlier, while the five-year average change for the week is a decline of 154 billion cubic feet.

Total U.S. natural gas storage stood at 2.527 trillion cubic feet as of last week. Stocks were 270 billion cubic feet less than last year at this time and 348 billion cubic feet above the five-year average of 2.179 trillion cubic feet for this time of year.

The report showed that in the East Region, stocks were 94 billion cubic feet above the five-year average, following net withdrawals of 116 billion cubic feet.

Stocks in the Producing Region were 185 billion cubic feet above the five-year average of 775 billion cubic feet after a net withdrawal of 33 billion cubic feet.

Elsewhere on the NYMEX, light sweet crude oil futures for delivery in March were down 0.51% and trading at USD95.92 a barrel, while heating oil for March delivery were down 0.31% and trading at USD3.2004 per gallon.





 

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