Natural gas gains on cool U.S. weather, inventory expectations

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Investing.com - A late-season cool snap over parts of the U.S. coupled with expectations for a bullish weekly supply report due out Thursday sent natural gas prices to two-month highs on Tuesday.

On the New York Mercantile Exchange, natural gas futures for delivery in June traded at $4.826 per million British thermal units during U.S. trading, up 0.55%. The commodity hit session high of $4.846 and a low of $4.756.

The June contract settled up 3.03% on Monday to end at $4.799 per million British thermal units.

Natural gas futures were likely to find support at $4.646 per million British thermal units, Friday's low, and resistance at $5.207, the high from Feb. 24.

A powerful spring weather system producing violent thunderstorms and tornadoes across the eastern U.S. should leave cool weather in its wake and hike demand for heating, according to updated weather forecasting models

The cool snap appeared to last for longer than once anticipated, which allowed natural gas prices to rally this week.

Supply anticipation boosted the commodity as well.

The U.S. Energy Information Administration's weekly supply report showed that natural gas storage in the U.S. rose by 49 billion cubic feet last week, above forecasts for an increase of 42 billion cubic feet, though cooler weather may yield a more bullish report this week.

Total U.S. natural gas storage stood at 899 billion cubic feet. Stocks were 831 billion cubic feet less than last year at this time and 1.008 trillion cubic feet below the five-year average of 1.907 trillion cubic feet for this time of year.

Elsewhere on the NYMEX, light sweet crude oil futures for delivery in June were up 0.26% at $101.10 a barrel, while heating oil for June delivery were up 0.69% at $2.9648 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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