Investing.com - Natural gas prices fell on Wednesday amid weather forecasts calling for a break in a cold snap gripping much of the country, while investors also avoided the commodity ahead of the release of Thursday's weekly U.S. inventory report.
On the New York Mercantile Exchange, natural gas futures for delivery in January traded at USD4.269 per million British thermal units during U.S. trading, down 0.43%.
The commodity hit a session low of USD4.267 and a high of USD4.332.
The January contract settled up 0.19% at USD4.287 per million British thermal units on Tuesday.
Futures were likely to find support at USD4.196 per million British thermal units, Tuesday's low, and resistance at USD4.442, Friday's high.
Prices fell after weather reports pointed to a warming trend across the central and eastern U.S. through Dec. 24.
Losses were limited, however, as weather forecasts called for a fresh blast of cold air to sweep across the country during the end of December.
Natgasweather.com reported that cold and wintry weather will move over the Midwest and Northeast, though milder conditions may settle over the western and southern U.S.
Uncertainty over how far colder temperatures dip down into the central U.S. towards the end of the month prevented bottom fishers from snapping up nicely-priced positions on Wednesday.
Milder temperatures diminish the need for heating this time of year, thus decreasing demand for natural gas at the nation's thermal power generators.
Investors, meanwhile, spent the session waiting for Thursday’s U.S. supply data to gauge the strength of demand from U.S. households.
Early withdrawal estimates range from 180 billion cubic feet to 229 billion cubic feet, compared to a drop of 70 billion cubic feet during the same week a year earlier. The five-year average change for the week is a decline of 133 billion cubic feet.
Total U.S. natural gas storage stood at 3.533 trillion cubic feet as last week, more than 7% below last year's unusually high level and nearly 3% below the five-year average for this time of year.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in February were up 0.13% and trading at USD97.60 a barrel, while heating oil for January delivery were up 1.51% and trading at USD3.0077 per gallon.
On the New York Mercantile Exchange, natural gas futures for delivery in January traded at USD4.269 per million British thermal units during U.S. trading, down 0.43%.
The commodity hit a session low of USD4.267 and a high of USD4.332.
The January contract settled up 0.19% at USD4.287 per million British thermal units on Tuesday.
Futures were likely to find support at USD4.196 per million British thermal units, Tuesday's low, and resistance at USD4.442, Friday's high.
Prices fell after weather reports pointed to a warming trend across the central and eastern U.S. through Dec. 24.
Losses were limited, however, as weather forecasts called for a fresh blast of cold air to sweep across the country during the end of December.
Natgasweather.com reported that cold and wintry weather will move over the Midwest and Northeast, though milder conditions may settle over the western and southern U.S.
Uncertainty over how far colder temperatures dip down into the central U.S. towards the end of the month prevented bottom fishers from snapping up nicely-priced positions on Wednesday.
Milder temperatures diminish the need for heating this time of year, thus decreasing demand for natural gas at the nation's thermal power generators.
Investors, meanwhile, spent the session waiting for Thursday’s U.S. supply data to gauge the strength of demand from U.S. households.
Early withdrawal estimates range from 180 billion cubic feet to 229 billion cubic feet, compared to a drop of 70 billion cubic feet during the same week a year earlier. The five-year average change for the week is a decline of 133 billion cubic feet.
Total U.S. natural gas storage stood at 3.533 trillion cubic feet as last week, more than 7% below last year's unusually high level and nearly 3% below the five-year average for this time of year.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in February were up 0.13% and trading at USD97.60 a barrel, while heating oil for January delivery were up 1.51% and trading at USD3.0077 per gallon.