Natural gas gains on chilly U.S. weather forecasts

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Investing.com - " Natural gas prices rose on Monday after updated weather forecasting models continued to call for below-normal temperatures for portions of the eastern U.S. through the middle of the month.

On the New York Mercantile Exchange, natural gas futures for delivery in December traded at USD3.576 per million British thermal units during U.S. trading, up 0.48%.

The commodity hit a session low of USD3.543 and a high of USD3.597.

The December contract settled up 1.14% at USD3.559 per million British thermal units on Friday.

Futures were likely to find support at USD3.381 per million British thermal units, Tuesday's low, and resistance at USD3.619, Thursday's high.

Updated weather forecasts called for below-normal temperatures to stick around through mid-November, edging out recent calls for milder temperatures to return during the time period.

Colder temperatures hike the need for heating this time of year, boosting demand for natural gas at the nation's thermal power generators.

Uncertainty when milder temperatures may return allowed for choppy trading during the session.

Elsewhere, U.S. supply levels also remained in focus. Total U.S. natural gas storage stood at 3.814 trillion cubic feet as last week, 2.9% below last year's unusually high level but 1.5% above the five-year average for this time of year.

Early injection estimates for this week's storage data range from 16 billion cubic feet to 36 billion cubic feet, compared to a 12 billion cubic feet increase during the same week a year earlier.

The five-year average for the week is a build of 19 billion cubic feet.

Elsewhere on the NYMEX, light sweet crude oil futures for delivery in December were up 0.40% and trading at USD94.98 a barrel, while heating oil for December delivery were up 0.31% and trading at USD2.8808 per gallon.









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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Forex and Currencies

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