Natural gas futures bounce off 1-week low in early trade
Investing.com
Published Sep 22, 2014 09:02AM ET
Natural gas futures rebound from 1-week low
Investing.com - U.S. natural gas futures bounced off a one-week low on Monday, as market players monitored near-term weather forecasts to gauge the strength of demand for the fuel.
On the New York Mercantile Exchange, natural gas for delivery in November tacked on 2.2 cents, or 0.58%, to trade at $3.926 per million British thermal units during U.S. morning hours.
Prices fell to a session low of $3.893 earlier, the weakest level since September 12.
Futures were likely to find support at $3.786 per million British thermal units, the low from September 12 and resistance at $3.990, the high from September 19.
Updated weather forecasting models calls for new pockets of colder-than-normal temperatures in the Southwest, Midwest and Northeast U.S. over the next ten days, which could boost early-season heating demand.
Meanwhile, the U.S. Energy Information Administration said in its weekly report on September 18 that natural gas storage in the U.S. rose by 90 billion cubic feet last week.
Inventories rose by 64 billion cubic feet in the same week a year earlier, while the five-year average change is a build of 60 billion cubic feet.
Injections of gas into storage have surpassed the five-year average for 22 consecutive weeks, alleviating concerns over tightening supplies.
Total U.S. natural gas storage stood at 2.891 trillion cubic feet as of last week, narrowing the deficit to the five-year average to 13.3% from 14.2% a week earlier and down from a record 54.7% at the end of March.
Elsewhere on the Nymex, crude oil for delivery in November shed 4 cents, or 0.04%, to trade at $91.62 a barrel, while heating oil for October delivery dipped 0.45% to trade at $2.704 per gallon.
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Written By: Investing.com
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