Natural gas gains on warm U.S. weather forecasts

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Investing.com - Natural gas futures rose on Friday after updated weather forecasting models called or warm, summertime temperatures to settle in across much of the U.S. in the coming days, though Thursday's bearish supply report continued to weigh on the commodity.

On the New York Mercantile Exchange, natural gas futures for delivery in July traded at $4.709 per million British thermal units during U.S. trading, up 0.16%. The commodity hit a session high of $4.726 and a low of $4.680.

The July contract settled up 1.31% on Thursday to end at $4.701 per million British thermal units.

Natural gas futures were likely to find support at $4.576 per million British thermal units, Wednesday's low, and resistance at $4.827, the high from May 7.

Updated weather-forecasting models called for above-normal temperatures to settle in across parts of the U.S. in the coming week, which should hike demand for air conditioning, though pockets of milder temperatures forecast for the northeast capped gains as did Thursday's bearish supply report.

The U.S. Energy Information Administration said in its weekly report Thursday that natural gas storage in the U.S. in the week ended May 30 rose by 119 billion cubic feet, above forecasts for an increase of 116 billion cubic feet.

Total U.S. natural gas storage stood at 1.499 trillion cubic feet. Stocks were 737 billion cubic feet less than last year at this time and 896 billion cubic feet below the five-year average of 2.395 trillion cubic feet for this time of year.

Producers would need to add approximately 2.5 trillion cubic feet to storage by November 1 to meet typical winter demand, analysts said.

Elsewhere on the NYMEX, light sweet crude oil futures for delivery in July were down 0.05% at $102.43 a barrel, while heating oil for July delivery were down 0.37% at $2.8690 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.



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