Investing.com - Natural gas prices rose for the first time in nine days on Friday, easing off a ten-year low as short-term weather models showed snow and freezing rain moving over the central and northeastern U.S., boosting expectations for a lift in heating demand.
On the New York Mercantile Exchange, natural gas futures for delivery in February settled at USD2.335 per million British thermal units by close of trade on Friday, plummeting 11.2% over the week.
Natural gas prices have plunged nearly 23% in the past two weeks as concerns over elevated inventory levels and mild winter weather in the U.S. dampened sentiment on the heating fuel. So far in January, prices are approximately 50% lower than a year ago.
Natural gas futures rose nearly 1% on Friday after the U.S. National Weather Service said that the New York-area was expected to receive as much as 4 inches of snow over the weekend, while Chicago was projected to get as much as 8 inches. It was the first signs of major snowfall in the U.S. Northeast since a freak late-October storm.
However, gains were limited as the NWS said that higher temperatures were forecast to return to the U.S. East Coast next week and warmer-than-normal weather forecast to spread across most parts of the U.S. through the end of January.
The U.S. National Oceanic and Atmospheric Administration offered a similar outlook, calling for above-normal temperatures throughout the East Coast, Midwest and much of the Southwest through mid-February.
This is typically the coldest time in winter, but temperatures in the U.S. have yet to reach levels cold enough to boost demand for the heating fuel, keeping prices depressed at unseasonably low levels.
Prices fell tumbled 6.1% on Thursday to trade at USD2.284, the lowest since February 25, 2002 as concerns over elevated inventory levels lingered after the U.S. Energy Information Administration said that natural gas inventories declined modestly last week.
In its weekly report, the EIA said that natural gas storage in the U.S. fell by 87 billion cubic feet in the preceding week. The drawdown was significantly lower than the 228 billion cubic feet withdrawn in the same week a year earlier. The five-year average change for the week is a decline of 162 billion cubic feet, according to U.S. Energy Department data.
Total U.S. natural gas storage stood at 3.290 trillion cubic feet as of last week, a record high for this time of year, up 20% compared to the same week a year earlier and 21% above the five-year average for the week.
With much of winter already over and inventories hovering at record-high levels, prices may still have further to fall. Some market participants expect prices to test the USD2.00-level last breached in late January 2002.
Elsewhere on the NYMEX, light sweet crude oil futures for March delivery traded at USD98.39 a barrel by close of trade on Friday, shedding 0.6% on the week, while heating oil for February delivery retreated 1.44% over the week to settle at USD3.000 per gallon by close of trade Friday.
On the New York Mercantile Exchange, natural gas futures for delivery in February settled at USD2.335 per million British thermal units by close of trade on Friday, plummeting 11.2% over the week.
Natural gas prices have plunged nearly 23% in the past two weeks as concerns over elevated inventory levels and mild winter weather in the U.S. dampened sentiment on the heating fuel. So far in January, prices are approximately 50% lower than a year ago.
Natural gas futures rose nearly 1% on Friday after the U.S. National Weather Service said that the New York-area was expected to receive as much as 4 inches of snow over the weekend, while Chicago was projected to get as much as 8 inches. It was the first signs of major snowfall in the U.S. Northeast since a freak late-October storm.
However, gains were limited as the NWS said that higher temperatures were forecast to return to the U.S. East Coast next week and warmer-than-normal weather forecast to spread across most parts of the U.S. through the end of January.
The U.S. National Oceanic and Atmospheric Administration offered a similar outlook, calling for above-normal temperatures throughout the East Coast, Midwest and much of the Southwest through mid-February.
This is typically the coldest time in winter, but temperatures in the U.S. have yet to reach levels cold enough to boost demand for the heating fuel, keeping prices depressed at unseasonably low levels.
Prices fell tumbled 6.1% on Thursday to trade at USD2.284, the lowest since February 25, 2002 as concerns over elevated inventory levels lingered after the U.S. Energy Information Administration said that natural gas inventories declined modestly last week.
In its weekly report, the EIA said that natural gas storage in the U.S. fell by 87 billion cubic feet in the preceding week. The drawdown was significantly lower than the 228 billion cubic feet withdrawn in the same week a year earlier. The five-year average change for the week is a decline of 162 billion cubic feet, according to U.S. Energy Department data.
Total U.S. natural gas storage stood at 3.290 trillion cubic feet as of last week, a record high for this time of year, up 20% compared to the same week a year earlier and 21% above the five-year average for the week.
With much of winter already over and inventories hovering at record-high levels, prices may still have further to fall. Some market participants expect prices to test the USD2.00-level last breached in late January 2002.
Elsewhere on the NYMEX, light sweet crude oil futures for March delivery traded at USD98.39 a barrel by close of trade on Friday, shedding 0.6% on the week, while heating oil for February delivery retreated 1.44% over the week to settle at USD3.000 per gallon by close of trade Friday.