Natural gas futures - weekly outlook: January 19 - 23
Investing.com
Published Jan 18, 2015 10:54AM ET
Natural gas futures rise 5.8% last week
Investing.com - U.S. natural gas futures declined for the second consecutive session on Friday, as weather forecasts predicted temperatures across the U.S. would not be as cold as previously thought, dampening near-term demand expectations for the heating fuel.
On the New York Mercantile Exchange, natural gas for delivery in February slumped 3.1 cents, or 0.98%, on Friday to settle at $3.127 per million British thermal units by close of trade.
On Thursday, natural gas hit $3.352, the most since December 22, before settling at $3.158, down 7.5 cents, or 2.32%.
Futures were likely to find support at $2.932 per million British thermal units, the low from January 14, and resistance at $3.352, the high from January 15.
Updated weather forecasting models for the lower 48 U.S. states called for seasonal temperatures over the next two weeks. The outlook for late-January previously called for a significant cold snap.
Bearish speculators are betting on the near-normal weather reducing winter demand for the heating fuel.
The heating season from November through March is the peak demand period for U.S. gas consumption.
On Thursday, the U.S. Energy Information Administration said in its weekly report that natural gas storage fell by 236 billion cubic feet last week, more than expectations for a decline of 224 billion and compared to a drop of 131 billion in the previous week.
Total U.S. natural gas storage stood at 2.853 trillion cubic feet, 11.0% above year-ago levels and 3.8% below the five-year average for this time of year.
Despite Friday's losses, Nymex natural gas prices tacked on 18.1 cents, or 5.78%, on the week, the first gain in eight weeks, as investors reacted to a cooler shift in weather patterns in first half of the week.
Natural gas soared 29.0 cents, or 9.85%, on January 14.
Natural gas prices are down almost 33% since mid-November as an unusually mild start to winter limited demand while production soared.
Elsewhere on the Nymex, crude oil for February delivery settled at $48.69 a barrel by close of trade on Friday, up 33 cents, or 0.67%, on the week.
Meanwhile, heating oil for February delivery slumped 2.52% on the week to settle at $1.661 per gallon by close of trade Friday.
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Written By: Investing.com
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