Investing.com - Natural gas futures edged lower during U.S. morning hours on Wednesday, as market players looked ahead to a closely-watched U.S. government report on natural gas supplies on Thursday, while continuing to monitor weather forecasts for the next few weeks to gauge the strength of U.S. heating demand.
Natural gas prices have closely tracked weather forecasts in recent weeks, as traders try to gauge the impact of shifting forecasts on winter heating demand.
On the New York Mercantile Exchange, natural gas futures for delivery in February traded at USD3.430 per million British thermal units during U.S. morning trade, down 0.7% on the day.
The February natural gas contract fell by as much as 1.3% earlier in the session to hit a daily low of USD3.402 per million British thermal units. Prices rallied to a two-week high of USD3.463 per million British thermal units on Tuesday.
Market players continued to monitor U.S. supply levels ahead of Thursday’s highly-anticipated government inventory report.
Early withdrawal estimates range from 100 billion cubic feet to 143 billion cubic feet. Inventories fell by 89 billion cubic feet in the same week a year earlier, while the five-year average change for the week is a decline of 144 billion cubic feet.
Total U.S. natural gas storage stood at 3.316 trillion cubic feet as of last week, 2.6% below last year’s level and 10.7% above the five-year average for this time of year.
Meanwhile, some profit taking also weighed after natural gas futures rallied nearly 11% in the four sessions leading up to Wednesday, as forecasts showing colder weather in the coming week boosted near-term demand expectations for the heating fuel.
Updated weather forecasts released earlier in the day continued to call for below-normal readings for most of the Eastern half of the U.S. in the next six-to-ten days.
The heating season from November through March is the peak demand period for U.S. gas consumption. Nearly 50% of all U.S. households use gas for heating.
The heating fuel has lost nearly 15% since touching a 14-month high of USD4.001 per million British thermal units on November 26, on speculation that temperatures won’t be cold enough to erase a surplus of the fuel in storage.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in March added 0.2% to trade at USD93.89 a barrel, while heating oil for February delivery eased up 0.1% to trade at USD3.014 per gallon.
Natural gas prices have closely tracked weather forecasts in recent weeks, as traders try to gauge the impact of shifting forecasts on winter heating demand.
On the New York Mercantile Exchange, natural gas futures for delivery in February traded at USD3.430 per million British thermal units during U.S. morning trade, down 0.7% on the day.
The February natural gas contract fell by as much as 1.3% earlier in the session to hit a daily low of USD3.402 per million British thermal units. Prices rallied to a two-week high of USD3.463 per million British thermal units on Tuesday.
Market players continued to monitor U.S. supply levels ahead of Thursday’s highly-anticipated government inventory report.
Early withdrawal estimates range from 100 billion cubic feet to 143 billion cubic feet. Inventories fell by 89 billion cubic feet in the same week a year earlier, while the five-year average change for the week is a decline of 144 billion cubic feet.
Total U.S. natural gas storage stood at 3.316 trillion cubic feet as of last week, 2.6% below last year’s level and 10.7% above the five-year average for this time of year.
Meanwhile, some profit taking also weighed after natural gas futures rallied nearly 11% in the four sessions leading up to Wednesday, as forecasts showing colder weather in the coming week boosted near-term demand expectations for the heating fuel.
Updated weather forecasts released earlier in the day continued to call for below-normal readings for most of the Eastern half of the U.S. in the next six-to-ten days.
The heating season from November through March is the peak demand period for U.S. gas consumption. Nearly 50% of all U.S. households use gas for heating.
The heating fuel has lost nearly 15% since touching a 14-month high of USD4.001 per million British thermal units on November 26, on speculation that temperatures won’t be cold enough to erase a surplus of the fuel in storage.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in March added 0.2% to trade at USD93.89 a barrel, while heating oil for February delivery eased up 0.1% to trade at USD3.014 per gallon.