Natural extend gains on forecasts for below-normal temperatures
Published Nov 25, 2013 01:33PM ET
Colder temperatures hike the need for heating and thus increase demand for natural gas at the nation's thermal power generators.
On the New York Mercantile Exchange, natural gas futures for delivery in January traded at USD3.839 per million British thermal units during U.S. trading, up 0.72%.
The commodity hit a session low of USD3.803 and a high of USD3.894.
The January contract settled up 1.90% at USD3.811 per million British thermal units on Friday.
Futures were likely to find support at USD3.546 per million British thermal units, Tuesday's low, and resistance at USD3.982, the high from June 19.
Updated forecasting models predicted cold air in place across much of the country will give way to moderate temperatures before a fresh blast of below-normal temperatures settles in across the country, which was bullish for the commodity.
Investors continued to applaud last week's supply data.
The Energy Information Administration said that natural gas storage in the U.S. fell by 45 billion cubic feet last week, compared to expectations for a withdrawal of 33 billion cubic feet.
Total U.S. natural gas storage stood at 3.789 trillion cubic feet as of last week, 2.3% below last year's unusually high level but 0.4% above the five-year average for this time of year.
Early withdrawal estimates for this week’s storage data range from 2 billion cubic feet to 4 billion cubic feet, compared to a drop of 2 billion cubic feet during the same week a year earlier.
The five-year average change for the week is a decline of 15 billion cubic feet.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in January were down 0.84% and trading at USD94.04 a barrel, while heating oil for January delivery were up 0.12% and trading at USD3.0428 per gallon.
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Written By: Investing.com
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