Investing.com - Natural gas futures rose to a four-week high on Monday, as updated weather forecasting models continued to point to colder than average temperatures in key gas-consuming regions in the U.S.
Some traders are already beginning to look ahead to this week's U.S. supply data, speculating that it could show the first storage withdrawal of the winter heating season.
On the New York Mercantile Exchange, natural gas futures for delivery in December traded at USD3.677 per million British thermal units during U.S. morning trade, up 0.45%.
Nymex gas prices rallied to a session high of USD3.705 per million British thermal units earlier, the strongest level since October 25.
The front-month December contract ended 1.53% higher on Friday to settle at USD3.660 per million British thermal units.
Natural gas futures were likely to find support at USD3.575 per million British thermal units, the low from November 15 and resistance at USD3.782, the high from October 28.
Updated weather forecasting models called for chilly temperatures across most parts of the eastern half of the U.S. during the next six-to-ten-days.
Forecasts originally called for mild weather during the period.
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.
Meanwhile, U.S. supply levels also remained in focus. Total U.S. natural gas storage stood at 3.834 trillion cubic feet as last week, 2% below last year's unusually high level but 1.5% above the five-year average for this time of year.
Early withdrawal estimates for this week’s storage data range from 15 billion cubic feet to 41 billion cubic feet, compared to a 36 billion cubic feet draw during the same week a year earlier.
The five-year average change for the week is a decline of 2 billion cubic feet.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in January fell 0.1% to trade at USD94.38 a barrel, while heating oil for December delivery shed 0.3% to trade at USD2.930 per gallon.
Some traders are already beginning to look ahead to this week's U.S. supply data, speculating that it could show the first storage withdrawal of the winter heating season.
On the New York Mercantile Exchange, natural gas futures for delivery in December traded at USD3.677 per million British thermal units during U.S. morning trade, up 0.45%.
Nymex gas prices rallied to a session high of USD3.705 per million British thermal units earlier, the strongest level since October 25.
The front-month December contract ended 1.53% higher on Friday to settle at USD3.660 per million British thermal units.
Natural gas futures were likely to find support at USD3.575 per million British thermal units, the low from November 15 and resistance at USD3.782, the high from October 28.
Updated weather forecasting models called for chilly temperatures across most parts of the eastern half of the U.S. during the next six-to-ten-days.
Forecasts originally called for mild weather during the period.
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.
Meanwhile, U.S. supply levels also remained in focus. Total U.S. natural gas storage stood at 3.834 trillion cubic feet as last week, 2% below last year's unusually high level but 1.5% above the five-year average for this time of year.
Early withdrawal estimates for this week’s storage data range from 15 billion cubic feet to 41 billion cubic feet, compared to a 36 billion cubic feet draw during the same week a year earlier.
The five-year average change for the week is a decline of 2 billion cubic feet.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in January fell 0.1% to trade at USD94.38 a barrel, while heating oil for December delivery shed 0.3% to trade at USD2.930 per gallon.