Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

U.S. natural gas bounces off 3-month low on bets for bullish storage data

Published 02/15/2017, 09:46 AM
© Reuters.  U.S. natural gas bounces off 3-month low
NG
-

Investing.com - U.S. natural gas futures rose for the first time in four sessions on Wednesday, bouncing off the lowest level since November as traders looked ahead to weekly storage data to gauge supply and demand levels.

Natural gas for March delivery on the New York Mercantile Exchange rose 5.6 cents, or around 1.9%, to $2.960 per million British thermal units by 9:45AM ET (14:45GMT), after losing 3.9 cents, or 1.3%, a day earlier.

Prices of the heating fuel sank to $2.887 on Tuesday, a level not seen since November 21, amid forecasts for warmer weather in key regions across the U.S. during the next few weeks.

The natural-gas market is on the defensive in recent days after forecasting models showed cold air exiting the Northeast, with the updated 6-10 day forecast looking warmer than a day ago.

Prices of the heating fuel are down almost 21% since the start of the year as forecasts for warm winter weather weighed on heating demand expectations.

Natural gas markets have been volatile in recent weeks, changing course rapidly in response to shifting outlooks in short-term weather patterns.

About half of U.S. homes use natural gas for heating.

Meanwhile, market participants looked ahead to weekly storage data due on Thursday, which is expected to show a draw of 130 billion cubic feet in the week ended February 10.

That compares with a withdrawal of 152 billion cubic feet in the preceding week, 163 billion a year earlier and a five-year average drop of 156 billion cubic feet.

Total natural gas in storage currently stands at 2.559 trillion cubic feet, according to the U.S. Energy Information Administration, 11.3% lower than levels at this time a year ago and 1.8% above the five-year average for this time of year.

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.