Investing.com - Natural gas futures were lower on Wednesday, as investors cashed out of the market to lock in gains after prices rallied to a two-week high earlier.
On the New York Mercantile Exchange, natural gas futures for delivery in December traded at USD3.581 per million British thermal units during U.S. morning trade, down 1%.
Nymex gas prices rose to a session high of USD3.662 per million British thermal units earlier, the strongest level since October 29.
The front-month December contract ended 1.2% higher on Tuesday to settle at USD3.617 per million British thermal units.
Nymex gas futures were likely to find support at USD3.542 per million British thermal units, the low from November 11 and resistance at USD3.683, the high from October 29.
Natural gas prices have been well-supported in recent sessions as updated weather forecasting models pointed to colder than average temperatures in key gas-consuming regions in the U.S.
Natural gas prices have closely tracked weather forecasts in recent weeks, as traders try to gauge the impact of shifting outlooks on early-winter heating demand.
The heating season from November through March is the peak demand period for U.S. gas consumption.
Meanwhile, meanwhile, market participants looked ahead to Thursday’s closely-watched U.S. supply data to gauge the strength of demand from U.S. households.
Early injection estimates range from 16 billion cubic feet to 36 billion cubic feet, compared to a 12 billion cubic feet increase during the same week a year earlier.
The five-year average for the week is a build of 19 billion cubic feet.
Total U.S. natural gas storage stood at 3.814 trillion cubic feet as last week, 2.9% below last year's unusually high level but 1.5% above the five-year average for this time of year.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in December fell 0.45% to trade at USD94.70 a barrel, while heating oil for December delivery declined 0.25% to trade at USD2.884 per gallon.
On the New York Mercantile Exchange, natural gas futures for delivery in December traded at USD3.581 per million British thermal units during U.S. morning trade, down 1%.
Nymex gas prices rose to a session high of USD3.662 per million British thermal units earlier, the strongest level since October 29.
The front-month December contract ended 1.2% higher on Tuesday to settle at USD3.617 per million British thermal units.
Nymex gas futures were likely to find support at USD3.542 per million British thermal units, the low from November 11 and resistance at USD3.683, the high from October 29.
Natural gas prices have been well-supported in recent sessions as updated weather forecasting models pointed to colder than average temperatures in key gas-consuming regions in the U.S.
Natural gas prices have closely tracked weather forecasts in recent weeks, as traders try to gauge the impact of shifting outlooks on early-winter heating demand.
The heating season from November through March is the peak demand period for U.S. gas consumption.
Meanwhile, meanwhile, market participants looked ahead to Thursday’s closely-watched U.S. supply data to gauge the strength of demand from U.S. households.
Early injection estimates range from 16 billion cubic feet to 36 billion cubic feet, compared to a 12 billion cubic feet increase during the same week a year earlier.
The five-year average for the week is a build of 19 billion cubic feet.
Total U.S. natural gas storage stood at 3.814 trillion cubic feet as last week, 2.9% below last year's unusually high level but 1.5% above the five-year average for this time of year.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in December fell 0.45% to trade at USD94.70 a barrel, while heating oil for December delivery declined 0.25% to trade at USD2.884 per gallon.