Natural gas soars as weather models intensify chilly forecasts
Published Nov 20, 2013 11:30AM ET
On the New York Mercantile Exchange, natural gas futures for delivery in December traded at USD3.647 per million British thermal units during U.S. trading, up 2.54%.
The commodity hit a session low of USD3.550 and a high of USD3.653.
The December contract settled down 1.69% at USD3.556 per million British thermal units on Tuesday.
Futures were likely to find support at USD3.546 per million British thermal units, Tuesday's low, and resistance at USD3.704, Monday's high.
Updated weather forecasting models called for a blast of cold air to come sweeping down from Canada over the next week before giving way to milder temperatures around Dec. 4, edging out earlier forecasts that called for a brief warming trend to take place in late November.
Colder temperatures hike the need for heating this time of year, increasing demand for natural gas at the nation's thermal power generators, while milder temperatures have the opposite effect.
Meanwhile, U.S. supply levels also remained in focus. Total U.S. natural gas storage stood at 3.834 trillion cubic feet as last week, 2% below last year's unusually high level but 1.5% above the five-year average for this time of year.
Early withdrawal estimates for this week’s storage data range from 15 billion cubic feet to 41 billion cubic feet, compared to a 36 billion cubic feet draw during the same week a year earlier.
The five-year average change for the week is a decline of 2 billion cubic feet.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in January were up 0.38% and trading at USD94.25 a barrel, while heating oil for December delivery were up 1.32% and trading at USD2.9443 per gallon.
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Written By: Investing.com
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