Investing.com - Natural gas futures rallied more than 3% on Monday, as forecasts for late this week and early next week turned warmer, boosting near-term demand expectations for the heating fuel.
Forecasts originally called for mild summer weather during the period.
On the New York Mercantile Exchange, natural gas futures for delivery in September traded at USD3.347 per million British thermal units during U.S. morning trade, up 3.6%.
Nymex gas futures rose by as much as 3.8% earlier in the session to hit a daily high of USD3.355 per million British thermal units, the strongest level since August 6.
The September contract settled down 2% at USD3.230 per million British thermal units on Friday, as mild weather forecasts and concerns over ample supplies weighed on sentiment.
Updated weather forecasting models pointed to hotter-than-normal temperatures in the northern tier of the U.S. from August 17 through August 26, boosting summer cooling demand for the fuel.
Demand for natural gas tends to fluctuate in the summer based on hot weather and air conditioning use.
Some bargain buying also contributed to gains, as traders returned to the market to seek cheap valuations after prices fell to the lowest level since February last week.
Nymex gas prices fell to USD3.133 per million British thermal units on Thursday, the lowest level since February 15.
The September contract has lost nearly 14% over the past three weeks, the biggest three-week drop in eight months, amid concerns over rising inventories and lingering below normal temperatures in the key Midwest and Eastern U.S. markets.
Total U.S. natural gas storage stood at 2.941 trillion cubic feet as of last week, 0.7% above the five-year average and rising to a surplus for the first time since March.
Early injection estimates for this week’s storage data range from 62 billion cubic feet to 77 billion cubic feet, compared to a 20 billion cubic feet increase during the same week a year earlier.
The five-year average for the week is a build of 42 billion cubic feet.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in September shed 0.6% to trade at USD105.35 a barrel, while heating oil for September delivery was little changed to trade at USD2.992 per gallon.
Forecasts originally called for mild summer weather during the period.
On the New York Mercantile Exchange, natural gas futures for delivery in September traded at USD3.347 per million British thermal units during U.S. morning trade, up 3.6%.
Nymex gas futures rose by as much as 3.8% earlier in the session to hit a daily high of USD3.355 per million British thermal units, the strongest level since August 6.
The September contract settled down 2% at USD3.230 per million British thermal units on Friday, as mild weather forecasts and concerns over ample supplies weighed on sentiment.
Updated weather forecasting models pointed to hotter-than-normal temperatures in the northern tier of the U.S. from August 17 through August 26, boosting summer cooling demand for the fuel.
Demand for natural gas tends to fluctuate in the summer based on hot weather and air conditioning use.
Some bargain buying also contributed to gains, as traders returned to the market to seek cheap valuations after prices fell to the lowest level since February last week.
Nymex gas prices fell to USD3.133 per million British thermal units on Thursday, the lowest level since February 15.
The September contract has lost nearly 14% over the past three weeks, the biggest three-week drop in eight months, amid concerns over rising inventories and lingering below normal temperatures in the key Midwest and Eastern U.S. markets.
Total U.S. natural gas storage stood at 2.941 trillion cubic feet as of last week, 0.7% above the five-year average and rising to a surplus for the first time since March.
Early injection estimates for this week’s storage data range from 62 billion cubic feet to 77 billion cubic feet, compared to a 20 billion cubic feet increase during the same week a year earlier.
The five-year average for the week is a build of 42 billion cubic feet.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in September shed 0.6% to trade at USD105.35 a barrel, while heating oil for September delivery was little changed to trade at USD2.992 per gallon.