Investing.com - Natural gas futures traded at a six-and-a-half-month high on Tuesday, as updated weather forecasting models pointed to frigid temperatures and heavy snows across most parts of the U.S. Northeast.
The U.S. Northeast is a key gas-heating area.
On the New York Mercantile Exchange, natural gas futures for delivery in January traded at USD4.263 per million British thermal units during U.S. morning trade, up 0.7%. Nymex January gas futures rose to a session high of USD4.287 per million British thermal units earlier, the strongest level since May 28.
The January contract rallied 2.87% on Monday to settle at USD4.232 per million British thermal units.
Natural gas futures were likely to find support at USD4.139 per million British thermal units, the low from December 9 and resistance at USD4.321, the high from May 28.
Updated weather forecasting models called for severe cold weather across the eastern U.S. during the next three-to-five days, with heavy snow expected in the Northeast and New England.
Continued cold across most of the nation was expected in the next seven- to-ten days.
Bullish speculators are betting that colder weather will increase demand for the heating fuel. The heating season from November through March is the peak demand period for U.S. gas consumption.
Meanwhile, U.S. supply levels remained in focus. Total U.S. natural gas storage stood at 3.614 trillion cubic feet as last week, more than 5% below last year's unusually high level and nearly 3% below the five-year average for this time of year.
Early estimates for next week’s storage data range from a draw of 75 billion cubic feet to 86 billion cubic feet, compared to a drop of 8 billion cubic feet during the same week a year earlier.
The five-year average change for the week is a decline of 76 billion cubic feet.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in January rose 1.05% to trade at USD98.37 a barrel, while heating oil for January delivery added 0.25% to trade at USD3.021 per gallon.
The U.S. Northeast is a key gas-heating area.
On the New York Mercantile Exchange, natural gas futures for delivery in January traded at USD4.263 per million British thermal units during U.S. morning trade, up 0.7%. Nymex January gas futures rose to a session high of USD4.287 per million British thermal units earlier, the strongest level since May 28.
The January contract rallied 2.87% on Monday to settle at USD4.232 per million British thermal units.
Natural gas futures were likely to find support at USD4.139 per million British thermal units, the low from December 9 and resistance at USD4.321, the high from May 28.
Updated weather forecasting models called for severe cold weather across the eastern U.S. during the next three-to-five days, with heavy snow expected in the Northeast and New England.
Continued cold across most of the nation was expected in the next seven- to-ten days.
Bullish speculators are betting that colder weather will increase demand for the heating fuel. The heating season from November through March is the peak demand period for U.S. gas consumption.
Meanwhile, U.S. supply levels remained in focus. Total U.S. natural gas storage stood at 3.614 trillion cubic feet as last week, more than 5% below last year's unusually high level and nearly 3% below the five-year average for this time of year.
Early estimates for next week’s storage data range from a draw of 75 billion cubic feet to 86 billion cubic feet, compared to a drop of 8 billion cubic feet during the same week a year earlier.
The five-year average change for the week is a decline of 76 billion cubic feet.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in January rose 1.05% to trade at USD98.37 a barrel, while heating oil for January delivery added 0.25% to trade at USD3.021 per gallon.