Investing.com - U.S. natural gas futures declined on Friday,
amid concerns that the arrival of spring will bring warmer
temperatures throughout the U.S. and cut into demand for
Spring and fall see the weakest demand for natural gas in the
U.S, as the absence of extreme temperatures curbs demand for
heating and air conditioning.
The heating season from November through March is the peak
demand period for U.S. gas consumption. Approximately 52% of U.S.
households use natural gas for heating, according to the Energy
On the New York Mercantile Exchange, natural gas futures for
delivery in April fell 0.94%, or 0.044 cents, on Friday to close
the week at $4.618 per million British thermal units.
The April contract rallied 3.07%, or $0.139 cents, on Thursday
to settle at $4.662 per million British thermal units on
Futures were likely to find support at $4.463 per million
British thermal units, the low from March 3 and resistance at
$4.736, the high from March 3.
On the week, Nymex
inched up 0.19%, or $0.009 cents.
Prices rallied on Thursday after weekly supply data showed that
natural gas storage in the U.S. fell by 152 billion cubic feet last
week, compared to expectations for a decline of 138 billion cubic
Total U.S. natural gas storage stood at 1.196 trillion cubic
feet, the lowest for this time of year since 2004.
Natural gas rallied to a more than five-year high of $6.493 per
million British thermal units on February 20 as frigid winter
temperatures in the U.S. led households to burn a higher than
normal amount of the fuel in furnaces to heat their homes.
Approximately 52% of U.S. households use natural gas for
heating, according to the Energy Department.
Data from the Commodities Futures Trading Commission released
Friday showed that hedge funds and money managers reduced their
bullish bets in natural gas futures in the week ending March 4.
Net longs totaled 152,182 contracts, down 11% from net longs of
170,972 in the previous week.
Elsewhere in the energy complex, light sweet crude oil futures
for April delivery settled at $102.58 a barrel by close of trade on
Friday, little changed on the week.
Meanwhile, heating oil for April delivery lost 1.38% on the week
to settle at $2.980 per gallon by close of trade Friday.
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